Companies Underinsure Their Biggest Risk

The numbers tell the story, according to this post from Insurance Journal. Citing a Ponemon Institute report released in April, it maintains that organizations are valuing their cyber assets at 14 percent more than their plant, property and equipment assets, but are spending four times more on insurance protection for those same “PP&E” assets. One reason may be that many respondents find the cyber insurance products inadequate – too expensive and with too many exclusions. The Penemon report, which was sponsored by insurer Aon, notes that most companies spend more on fire insurance that they do on cyber insurance, even though the probability of a fire is relatively low and the insured asset generally far less valuable.