Is cyber insurance a good investment? What healthcare CISOs and CIOs should know

The healthcare industry is increasingly targeted by cybercriminals, prompting many organizations to invest in cyber insurance. Determining the right coverage involves considering risk tolerance, engagement from board and C-suite members, and the potential costs of recovery. Insurers also assess a healthcare organization’s cybersecurity program before approving a policy, and higher rates may be applied due to increased ransomware incidents. Cyber insurance can cover ransom payments in the event of a successful attack, but organizations should be aware of potential penalties for paying ransoms to sanctioned entities. Cyber insurance should be actively managed by CISOs and CIOs to effectively mitigate risk.