ibn logo bar
January/February 2022  Volume 33, Number 1        
 

This Just In ...

Working from home with weak security during the pandemic has created a surge in ransomware attacks.

As a result, losses plus increased demand has caused insurers to reduce the amount of cyber insurance they are willing to offer by half, says Business Insurance. At the same time, they have increased premiums for these coverages, including repairs, business insurance and reputational damage remediation.

Insurers that issued $5 million cyber liability policies last year have scaled back to limits of between $1 million and $3 million in 2021, according to a report released last month by U.S. broker Risk Placement Services.

Not just Lloyd’s of London, which controls a fifth of the cyber insurance market, but U.S. insurers such as American International Group, have reduced their capacity.

Cyber criminals used to favor stealing data and selling it to third parties, but now ransomware is the attack of choice. A ransomware attack on the Colonial Pipeline shut down the largest fuel pipeline in the nation in May, resulting in a payment of $4.4 million to the hacking group DarkSide, though some of that ransom money was later recovered by the authorities.

Premium rates have almost doubled in the United States and jumped by 73% in Britain because of the frequency and severity of ransomware attacks, insurance broker Marsh told Business Insurance.

Rates for some policies had risen by as much as 300%.

[return to top]

 
 

 

In this issue:

This Just In...

Verdicts Go Nuclear

How to Avoid the Legal Pitfalls of Telecommuting

7 Ways to Improve Company Driver Safety

Benefits of Green Construction

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2022 The Smarts Publishing. Tel. 877-762-7877. www.smartspublishing.com