Cyber Insights: Ransomware
Ransomware has been the largest driver in Cyber Insurance claims in the last five years and continues to be a serious threat to both public and private entities across the nation. As the country shifted to working remotely during the pandemic cyber claims and more specifically ransomware claims rose to an all-time high. With the average single ransom up to $247,000 and the average incident cost up to $352,000 in 2020 (according to Advisen's loss data provided by Zywave).
The increase of frequency and severity amongst cyber and ransomware has created a hardened market. Traits of a hard market consist of carriers significantly raising rates, increasing self- insured retentions and deductibles, limiting coverages, requiring several security measures, limiting class of business and other carriers will leave an insurance market all together. All the forementioned is what the insurance industry is experiencing in today's cyber market.
The importance of cyber security is two-fold:
1) Prevent attacks that can be costly and that can cripple an organization and its ability to function for long periods of time.
2) Procure coverage and get favorable rates. Carriers are requiring numerous subjectivities be met before even offering quotes. Some of these subjectivities include:
- Multifactor Authentication
- Incident Response Plan
- Required risk controls to be in place for software that is no longer being updated by the manufacturer
- also known as end-of-life network
- Endpoint Protection software
Here are some tips to consider:
- Request non-invasive system scans from your carrier (many carriers provide these and they assist in identifying holes or entry points as well as offering risk management).
- Talk with your agent or IT specialist to develop an incident response plan for your organization.
- Download and install software updates for operating systems as they are available.
- Train staff on what to do with suspicious emails, how to protect their devices and what to do if their device has been compromised.
- Utilize the Federal Communications Commission's Stop.Think.Connect program at www.cisa.gov/stopthinkconnect for simple steps to keep your information safe.
In today's world it is important to have cyber security measures in place, cyber liability coverage and a broker partner/carrier that understand cyber risks.
Please reach out to us if you have questions – we are here to help.
For further information please contact: Jeff Griffin at (541) 954-5707, WFC C.A.M.P. Coordinator