Japanese Firms Turn to Cyber Insurance After Data Breaches

More Japanese companies are turning to cyber insurance after prominent data breaches, according to Maddie Baker. The post indicates that cyber insurance typically reimburses a range of response costs arising from data breaches, including expenses linked to hacking, internal data leaks, and certain IT security assessments aimed at preventing repeated compromises.

It also notes coverage for digital forensic work to identify attackers and uncover vulnerabilities, as well as potential losses from diminished business opportunities following a breach. The piece flags a notable exception, stating that ransom payments to attackers are not covered by such policies.

The article frames this shift as a reaction to high-profile incidents, with the Japan Times cited as the original reporting source. While the post does not provide granular details of specific breaches or policy terms, it implies insurers are emphasising coverage of forensics, breach response, and recovery costs, while explicitly excluding ransom payments.

Baker’s remarks raise the question of whether ransom payments fall outside cyber insurance at all, presenting it as a point of discussion rather than a confirmed policy norm. The post directs readers to the Japan Times for the underlying reporting and leaves the practical interpretation of coverage terms to those breaches and insurers cited by that outlet.