Cyber Insurance Renewals Denied During Ransomware Epidemic
The ransomware epidemic is in full swing which is making cyber insurance even more critical to businesses all over.
Cyberattacks have taken a significant rise in both the frequency and severity of them. The most common targeted attacks involve ransomware and sophisticated social engineering scams. Unfortunately, ransom demands have been increasing every year; over the $1 million threshold in 2018, over the $3 million threshold in 2019 and over the $50 million threshold in 2020.
Due to this, cyber insurers have had no choice but to push their services on businesses as well as make some changes along the way. Some of the changes they have made are increasing deductibles, introducing stricter underwriting criteria and seeking more rate. Insurance companies are also now requiring that certain levels of cyber security are in place before they even write a policy. Otherwise, they cancel the policies and double and triple their cost, so it is very important to be proactive.
Although these changes may seem necessary, they are only a short term solution. Of course, the long term solution would be to raise awareness around how serious ransomware and other cyber threats are. As a hardworking business owner, could you imagine losing everything? If you don’t have cyber insurance, now is the time to do so.
As always, CATS Technology Solutions Group is here to assist you with whatever you need, including any cyber insurance concerns. However, it’s important to keep in mind that CATS Technology doesn’t have any control over the new policies that these insurance companies have put into place. However, our technicians can guide you to take preventative measures that complement an existing security approach. After all, prevention is key.