ADVERTISEMENT

Home Working Is Creating Dangers, New Business for Cybersecurity

Home Working Is Creating Dangers, New Business for Cybersecurity

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.

Home Working Is Creating Dangers, New Business for Cybersecurity

Everybody’s Problem

The world is projected to spend $143 billion on cybersecurity in 2021.

Home Working Is Creating Dangers, New Business for Cybersecurity

A Boon for Cloud Firms

Remote work has pushed more workflow to the cloud.

Home Working Is Creating Dangers, New Business for Cybersecurity

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.

Home Working Is Creating Dangers, New Business for Cybersecurity

… And the Public’s, Too

Stocks of cloud security firms have soared during the pandemic.

Home Working Is Creating Dangers, New Business for Cybersecurity

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.

Home Working Is Creating Dangers, New Business for Cybersecurity

Opportunity Cost

Lost business accounted for 38% of the average total cost of a data breach.

Home Working Is Creating Dangers, New Business for Cybersecurity

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.

Home Working Is Creating Dangers, New Business for Cybersecurity

Covering Losses

U.S. cyber premiums hit $2.7 billion in 2020, up more than 20% from 2019.

Home Working Is Creating Dangers, New Business for Cybersecurity

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.

Home Working Is Creating Dangers, New Business for Cybersecurity

©2021 Bloomberg L.P.