Security News > 2022 > March > How the increase in ransomware has impacted the cyber insurance market

The increase in frequency and cost of ransomware attacks has made ransomware a board-level risk and put the cyber insurance industry under extreme pressure.

The proliferation of ransomware has led to an increase in the frequency and value of cyber insurance claims.

According to Marsh, the price of cover in the US grew by 130% in the fourth quarter of 2021 alone, while in the UK it grew by 92%. These changes in cyber insurance practices are putting businesses in a difficult position, as cyber insurance is fast becoming a condition for doing business in certain sectors.

To resolve the issue, many insurers will want some form of verification that businesses are taking the correct cyber hygiene measures, so they can more effectively price and allocate cover, akin to the shift that took place in the automobile market with black box car insurance.

According to the research, all the security leaders would be willing to demonstrate the strength of their cyber programme to cyber insurers, with data-driven metrics, if it meant they could reduce their cyber insurance premium.

"The current, distressing situation in the Ukraine may well increase the cyber risk to companies, making it harder for underwriters to effectively price policies and even harder for companies to buy any cyber insurance cover."

News URL

https://www.helpnetsecurity.com/2022/03/22/cyber-insurance-crisis/