Companies buying cyber insurance increased 33% in 2012, says Marsh

More companies purchased cyber insurance in 2012 over previous years in an effort to protect themselves from data breaches, notes a new report from Marsh.

The number of the company’s U.S. clients purchasing cyber insurance increased by 33% from 2011 to last year, notes the report.

“Cyber insurance limits purchased in 2012 averaged $16.8 million across all industries, an increase of nearly 20% over 2011,” Marsh said.

“Communication, media, and technology companies led all industries, both by average limits purchased ($33.4 million) and the rate of increase over 2011, which was nearly 36%,” the company noted.

The services industry, which includes professional, business, legal, accounting, and personal services firms, experienced had a 76% jump over 2011 in the number of clients purchasing cyber coverage. The education sector was nearly as high, with a 72% rise, while financial institutions had a 32% rise, Marsh said.

“Awareness of cyber and privacy risks continue to grow, especially in the wake of a number of highly visible data breaches, hacking attacks, litigation, and increased government focus on cyber security,” Bob Parisi, Network Security and Privacy Practice Leader for Marsh noted in a statement. “As a result, companies are now looking to manage their day-to-day cyber risks in the same way they do more traditional risks—through the purchase of insurance.”

Smaller companies paid less for the coverage than larger ones, which tend to experience more breaches, the report also noted.