There were on average three new E&O cyber matters per business day in 2020, a whopping 100 percent increase from 2019, and most were ransomware event related.
- Criminals can easily obtain ransomware (ransomware as a service).
- Companies are increasingly paying ransom demands; a contentious issue (here, here, here, here).
- SMBs are increasingly vulnerable to a wide range of attacks, including phishing attacks and increased vulnerabilities from WFH.
The Cyber Risk Insurance market is hard and getting harder – prices are increasing. Increases in the number and severity of attacks has resulted in tightened underwriting, reduced coverage and rate increases. One example of reduced coverage is a reduction in sub-limits for specific coverages, such as a reduced ransomware sub-limits. In addition, some insurers are adding active pre-coverage and concurrent risk management resources such as scanning for threat vulnerabilities.
Specialty Insurance Blog – News & Commentary on Specialty Insurance – with an Emphasis on Professional Liability Insurance
Also, see the related Innovate Insurance Blog – Innovation & Entrepreneurship in Insurance