Fall in high profile hacks leads to reduction in cyber insurance rates

A reduction in high profile data breaches has led to cuts in cyber insurance rates for high-risk businesses in the first three months of 2016.

A reduction in high profile data breaches has led to cuts in cyber insurance rates for high-risk businesses in the first three months of 2016.

High-risk businesses, such as those in the retail or healthcare industries, have seen their insurance fees reduced according to brokers.

This news follows the sudden hike in cyber insurance rates which many businesses experienced last year after a number of high-profile data breaches hit the news. Some of the more high-profile attacks included health insurer Anthem, toy manufacturer Vtech, as well as Carphone Warhouse.

Fall in high profile hacks leads to reduction in cyber insurance rates

According to insurance broker Marsh, companies in high-risk industries paid, on average, 13% less for £1 million in cyber coverage in the first quarter of 2016, with the rate falling to $18,756.

As a comparison, Marsh, a unit of Marsh & McLennan Cos Inc., claimed the average premium paid by comparable buyers in industries such as retail and healthcare rose 28% last year to $21,642.

Marsh cyber insurance executive Robert Parisi, explained why he thought this dip has occurred: "Pricing has stabilised. There is only so far things can go before people choke and say 'I’ve had enough.”

High profile breaches have led to a number of large payouts, including a £90m following a breach at Target and £100 for a breach at Home Depot.