In 2021, experts predict there will be a ransomware attack every 11 seconds.*
Are you covered?
Going beyond security industry newsletters, white papers and email blasts, the issue & impact of ransomware in 2021 on businesses globally is unfortunately now front page news. From the Crowdstrike hack (January), Microsoft Exchange (March), C.N.A. Insurance Company (March), and a number of others with varying magnitude, culminating most recently with the Colonial Pipeline cyberattack this past Friday (May), ransomware has emerged as one of the more profound financial and operational interruptions affecting businesses (and insurance companies) worldwide.
Beyond these headline events, ransomware attacks are constantly being lodged at businesses large and small, and the cyber insurance marketplace has generally responded by covering policyholders for the actual ransom demand and attendant costs (such as rebuilding databases), to allow businesses to return to operations. Unfortunately, this exponential rise in costs, claims and payouts, both in the domestic US and foreign insurance marketplaces, has caused carriers to reevaluate how ransomware is being protected or excluded in respective policy forms, and a sharper eye is being pointed at the underwriting of such risks.
Carrier responses range from precipitous & dramatic YoY premium and retention increases to building additional sublimit and/or co-insurance, or to entirely excluding ransomware coverage if cybersecurity controls fall below a particular base line. Further, as just announced in France, certain primary carriers (e.g., Axa XL) simply will refuse to offer protection/reimbursement on the ransom payment itself. As we are all experiencing a material constriction in available carrier capacity across the insurance industry, depending on industry sector and line of insurance, the insurance capital markets are seeking to: (a) mitigate their financial exposures; and (b) increase respective insured’s “skin in the game” on costly risks such as ransomware, malware and breach response more broadly.
Corporate Risk Solutions, LLC is the premier independent risk & insurance advisor to provide thought leadership, risk sound-board and needed guidance to its clients to navigate through the various & sudden risks facing enterprises globally. CRS is well versed in the evolution of the cyber security and the correlating insurance marketplace; and have worked with all relevant carriers to best marry their understanding with clients’ needs to achieve comprehensive cyber coverage in these most turbulent times.
CRS is an independent advisor across the risk continuum, navigating clients through the otherwise opaque insurance marketplace.
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