Cancelling cyber insurance: renewing cover and reducing risks

Cancelling cyber insurance rarely comes with much lead time. Suddenly, companies are faced with the question: What happens if this protection no longer exists? Cyber insurance is an essential element for many organisations to protect themselves against the financial and legal consequences of cyber attacks. However, when insurers cancel policies or companies fall out of cover, a gap quickly arises that can have serious consequences.

What is behind the cancellations?

There are many reasons why cyber insurance policies end:

Insurers withdraw partially or completely from the cyber market for strategic reasons.
Companies no longer fulfil the increasing requirements for security standards.
High loss ratios are causing insurers to assess risks more closely and cancel certain policies.

No matter what the reason, the result remains the same: companies must act - quickly and strategically.

Why is cyber insurance so important?

Cyber insurance is not a substitute for cybersecurity measures, but a supplement. They offer protection against the financial and legal consequences of a cyber attack, for example by: Cover for recovery costs for IT systems, support with crisis management and communication, assumption of legal costs or fines.

If this cover is omitted, companies bear the entire risk themselves - a potentially existential threat, especially in times of increasing cybercrime.

Strategies for dealing with a cancellation

What can companies do if the insurance is cancelled? The first step is to take stock:

Understand your own risk: What threats exist and how well is the company protected against them?
Strengthen cybersecurity: Measures to improve the security situation not only help in the event of an emergency, but also strengthen the negotiating position with new insurers.
Long-term planning: Establishing a security culture within the company is crucial in order to be better protected against risks not only today, but also in the future.

The role of company management

An issue such as the loss of cyber insurance requires attention at the highest level. Management and board members should not only coordinate with IT departments or external partners, but also take responsibility themselves. A sustainable security strategy is an entrepreneurial factor that goes far beyond IT.

Cyber insurance cancelled: renew cover and reduce risks