Cyber Insurance Rates Increasing, GAO Report Finds

A report from the U.S. General Accounting Office cited in a post by the NACD  presents data showing that more entities are electing to take on cyber coverage. The May 2021 report also found that prices are increasing for cyber insurance. “Industry sources said higher prices have coincided with increased demand and higher insurer costs from more frequent and severe cyberattacks.” The GAO report cited a recent survey of insurance brokers which found that more than half of respondents’ clients saw prices go up 10–30 percent in late 2020. Insurers are also reducing coverage limits, the GAO reported, due to the growing number of cyberattacks particularly in healthcare and education sectors. The GAO report noted that the cost of malicious cyber activity to the U.S. economy was between $57 billion and $109 billion in 2016. The National Defense Authorization Act for Fiscal Year 2021 included a provision for the GAO to review the state and availability of insurance coverage for cybersecurity risks.