Cyber attacks are becoming even more pervasive, and the damage is growing even as attack vectors shift to avoid cyber security measures. Insurers are responding with tighter underwriting and continued rate increases.
For example, healthcare breaches hit an all-time high in 2021 (here). But data breaches are a small part of the story. Some 2021 statistics to consider (see here):
- There were 623.3 million cyberattacks globally
- US cyberattacks rose by 98%
- In one survey, 66% of organizations were attacked by ransomware, up 37% from the prior year
- 11% of organizations said they paid ransoms of $1 million or more
The increasing attacks impact Cyber Insurance underwriters, who pay many of these claims. In a ransomware attack, the ransom payment is not the significant loss cost component – it is business interruption costs (see our post here). Even a ransomware attack with a small ransom demand can result in business interruption costs in the millions.
Any organization can be a target of a cyber-attack, and Cyber Insurance is a critical component of any cyber security plan (here). We can help.
eSpecialty Insurance is your specialty insurance expert. We have developed a streamlined marketplace to provide multiple proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. Try our online Cyber Insurance Quoting Portal or get in touch with us. We look forward to working with you.