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How all of this will eventually impact the cost of cyber insurance remains to be seen, according to Sakore.
"If there weren't other market forces at work, I would say that cloud computing could drive up the cost of insurance. At the end of the day it's about how much risk you are willing to assume. Some people just have to take the risk because they don't have the financial ability to purchase one of these policies. But, I suspect that might change too. I think the SMBs will be early adopters because cloud providers can often deliver better security than SMBs can manage on their own. This can apply downward pressure on price. And as more SMBs seek out this type of insurance, the law of supply and demand can apply downward pressure on prices, too."
The market for cyber insurance is mostly at the enterprise level, he said. But with 30 to 35 insurance companies in the market, creativity is beginning to take hold. Some smaller companies can get limited amounts of cyber insurance in the form of a rider to their Errors and Omissions (E&O) insurance. "It's a pretty aggressive market because there's a lot of people buying and a lot of people selling," he added.