(Bloomberg Markets) — Cyberattacks represent one of the biggest risks across all sectors. The rise of remote work is exposing new vulnerabilities to data breaches as sophisticated ransomware attacks accelerate. Although this risk is giving some companies expensive headaches, it’s also creating opportunities for security providers. Here’s a look at who’s spending on and profiting from growing cybersecurity threats.
Bulging Budgets
Cybersecurity expenses are rising faster than overall IT spending.
Everybody’s Problem
The world is projected to spend $143 billion on cybersecurity in 2021.
A Boon for Cloud Firms
Remote work has pushed more workflow to the cloud.
In Private Equity’s Sights …
Cybersecurity companies are attractive targets for private equity investors because the sector is fragmented and gaining business from governments and enterprises.
… And the Public’s, Too
Stocks of cloud security firms have soared during the pandemic.
Fearing a Cyberattack as Much as a Pandemic
Although infectious disease outbreaks shot up the list of concerns for companies over the past year, cyber incidents remain a big worry among risk experts.
Opportunity Cost
Lost business accounted for 38% of the average total cost of a data breach.
Another Downside of Working From Home
The average cost of a data breach was highest for organizations where more than 60% of employees were working remotely.
Covering Losses
U.S. cyber premiums hit $2.7 billion in 2020, up more than 20% from 2019.
Insurers See More Risk, Higher Rates
From 2016 to 2019, cyber insurers had an average loss ratio of 40%. In 2020 it jumped to 67%, as the average claim size soared and spurred 2021 rate increases.
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