When you look at the costs of doing business, there are certain line items that are more predictable than others. Take for example monthly software as a service fees or office leases. But one area that has less predictability is that of the costs associated with cyber incidents. This is where cyber risk insurance comes in.
Though it has gained popularity in recent years, cyber risk insurance has actually been around for nearly two decades. The market was driven by data breach notification laws, which were first enacted in the U.S. in California in 2002. In 2009, the European Union implemented a breach notification law for telecoms and ISPs.