Cyber insurance remains a luxury for some, according to a new whitepaper in which data analytics firm Verisk shines a spotlight on the opportunities that insurers have to address the ransomware problem.
“Targeted ransomware has become a problem that no organization can ignore,” declared Verisk in the 10-page document seen by Insurance Business. “The unfortunate reality is that everyone with an internet connection is vulnerable to a ransomware attack.
“The threat is becoming more substantial as criminals become more sophisticated and aggressive while executing their attacks, including the emergence of triple extortion ransomware attacks. Meanwhile, the severity and frequency of these attacks continue to grow exponentially.”
Examples featured in the whitepaper include recent ransomware attacks on Microsoft Exchange Server, Colonial Pipeline, and JBS Foods.
Verisk – the name behind cyber aggregation and modeling tool Cyber Risk Navigator – stated: “Insurers have some opportunities to get ahead of the problem. Demand for coverage is increasing with the ubiquity of cyberattacks, but insurers must be nimble and flexible in responding to each company’s needs.
“To properly grow a cyber book, it’s vital an insurer fully comprehends the risks and magnitude of potential losses. Cyber insurance is an opportunity for carriers – if executed deliberately and if risks are appropriately priced and understood.”
It was noted in the whitepaper that, from 2019 to 2020, the total number of global ransomware reports surged by 715%.