AI Spurs Greater Need for Cyber Insurance

April 23, 2024

It’s no secret that artificial intelligence is growing more and more intertwined with society, and that it subsequently affects each and every one of our daily lives. Currently, Forbes estimates that over 70% of businesses are using or considering A.I. for professional use, whether that’s using it to directly produce goods and services, or simply adding chatbots on their front webpage.

Nonetheless, the rise of AI is a double-edged sword for cybersecurity. Experts suspect that it will begin, and has already started, pushing more people towards getting cyber insurance — both professionally and for their personal coverage, too.

AI can be used by hackers to create more targeted and evasive attacks. These attacks can be harder to detect with traditional methods and could potentially exploit vulnerabilities in personal devices and smart homes. It’s well-known that Internet of Things (IOT) devices are less secure than professional-grade hardware that you might have at your job.

With AI integrated into more aspects of our lives, from thermostats to cars, a successful cyberattack could have a wider impact. An attack on a connected car could be far more dangerous than one on a traditional computer.

While the good guys are hard at work developing security solutions that integrate artificial intelligence, the reverse is also true; attackers will likely develop their own AI tools to bypass whatever new defenses we throw up in their way. This ongoing arms race will make staying secure a constant challenge.

Data breaches, ransomware attacks, and identity theft can cause significant financial losses and personal hassle. Cyber insurance can help cover the costs associated with a cyberattack, such as data recovery, forensic investigation, legal fees, and credit monitoring. This can be a lifesaver for businesses and individuals who wouldn’t be able to afford these costs on their own.

Many cyber insurance policies also provide access to or help pay for a team of cybersecurity experts who can help you respond to a cyberattack and mitigate the damage. This can be invaluable in the wake of a crisis.

While cyber insurance isn’t a guarantee against cybercrime, it can be a valuable tool for managing risk and protecting yourself from the financial consequences of an attack.

AI thrives on data, and as AI becomes more prevalent, we can expect even more personal information to be collected and stored. This data becomes a target for hackers, and a breach could lead to identity theft or financial loss.

Because of this, many believe that cyberattacks will become more frequent and impactful. Cyber insurance can help people and businesses alike recover from financial losses due to data breaches, identity theft, and other cybercrimes. Of course, it’s a stipulation of most policies that you have a robust cybersecurity system and written documentation of your procedures to prove your compliance before they’ll pay out any money.

Knowing that you have cyber insurance can give you peace of mind in an increasingly digital world. It can help you feel more secure knowing that you’re financially protected in the event of a cyberattack.

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