The healthcare sector faces the dual challenge of defending itself against cyberattacks while premiums for cyber insurance increases. (Navy)
In just the last two years alone, industries facing an onslaught of cyberattacks, like healthcare, began facing another problem: cyber insurance carriers were limiting coverage, increasing premiums, and added security requirements needed to obtain a policy.
In 2021 and 2022 the Government Accountability Office confirmed these growing challenges, noting that the embattled sectors were simultaneously opting into cyber coverage — with a much higher price tag. The reports drew alarm from healthcare stakeholders, who recently confirmed to SC Media that these hurdles are likely to remain into the foreseeable future.
Industry leaders are saying that it’s getting to the point where cyber insurance carriers are telling potential clients that the entity must add specific security elements or they won’t be able to provide coverage, or will only do so at a significantly higher rate, explained Dave Bailey, vice president of security services for CynergisTek.
Many healthcare entities are responding by pivoting to reach those security goals so that they can demonstrate due diligence in the event of a breach or security incidents. But resource challenges are making those lofty goals harder to reach.
In short, healthcare providers understand the importance of the new requirements, but are finding it extremely difficult to add all of the required additions, especially smaller providers.
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