Feb 27, 2024Why Cyber Insurance Is Becoming A Business Staple
The Problem of Burnout in Cybersecurity
Cybersecurity and IT teams are getting more attention lately with the rise in digital dependency, hacking, and quickly evolving technologies used in practically every industry. While this may seem like an abundance of opportunity for cybersecurity and IT professionals to stay busy, it’s also creating a major burnout problem.
In a recent report, it was noted that the average length of time that a chief information security officer holds their position rests between 18 and 24 months. The reason? Constant stress and urgency of the job they hold. Cybersecurity has become supremely demanding of its professionals and is also putting companies at risk by not having a consistent roster of employees and leaders sticking around to get the job done.
This burnout has put even more pressure on overloaded professionals with nearly two out of every three cybersecurity workers, including executives, considering quitting their jobs altogether.
Worse Before It Gets Better
According to Hiscox Reading Readiness report that went out earlier this year, 61 percent of cybersecurity firms suffered a cyber attack in the past year, compared to just 41 percent the prior year. The average cost for losses related to cyberattacks also went up, landing at about $370,000 from the previous total of $229,000.
These numbers reflect the fact that, sadly, cybersecurity issues are only going to continue to get worse while industry professionals find ways to combat them, creating more work, more hours, and more stress for them. Another major component of the stress levels is the fact that some cybersecurity teams lack the necessary skills and experience to keep cybersecurity attacks away. This is due in part to the consistent turnover of executives, leaders, and everyday professionals.
As cybersecurity teams struggle to keep up with the hours, demands, tech advances, and threats, the gap in cybersecurity talent will only continue to grow larger and larger as companies’ defenses only get more stretched out.
The turnover rate of employees and the burnout connected to it is also leaving companies exposed to more risk. This is also putting an emphasis on the necessity of having a comprehensive cybersecurity insurance plan, like what Tangram Insurance Services offers. While this kind of insurance doesn’t do the cybersecurity job, such as keeping companies safe from cyber attacks, it does help clean up the mess afterward.
One of the ways in which cybersecurity insurance helps companies is by working with c-suite executives who oversee cybersecurity and IT in a company, relieving some of the stress related to a cyber attack.
How to Beat Burnout
Businesses should consider rotating security roles in order to help cut down on stress and burnout in cybersecurity. Downtime should be implemented and rotations can help with mental alertness and attention. Cybersecurity leaders who are charged with monitoring cyber threats can be periodically shifted to other positions where they can have a mental break.
Furthermore, training and recognition should be included in a company’s approach to cybersecurity professionals. If resources aren’t necessarily available to lighten some of the burden for cyber teams, then leadership should still encourage and recognize employees and their needs. Offering up training certifications can help leadership get out in front of the same issues related to burnout by mitigating the shortage of knowledge while also boosting self-value.
About Tangram Insurance Services
Located across the Golden Gate Bridge, just outside of San Francisco, Tangram Insurance Services is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.