Cyber Insurance Rates Rise; Insurers Review Coverage Options
Cyber insurance rates have jumped about 25 percent over the past year due in part to costly ransomware claims, according to Reuters.
Although the number of ransomware attacks actually fell in 2019 vs. 2018, the impact of those attacks rose. Indeed, savvy hackers hit more lucrative targets — municipalities, MSP software platforms, and more — and increased their ransom demands. Some of the attack victims that didn’t pay the ransom wound up paying millions of dollars to essentially rebuild their networks from scratch.
Now, cyber insurers are trying to figure out new strategies to minimize their risks while also continuing to protect policy holders.
For example, Allianz SE is evaluating cyber insurance price adjustments and whether ransomware should be a separate product from its general cyber coverage, a company spokesperson told Reuters. Other insurance companies are considering using underwriting firms that offer added network features to prevent cyberattacks from spreading across organizations’ systems and reviewing their criteria for organizations that have been most vulnerable to ransomware.
Cyber insurance policies often cover the costs associated with cyberattack ransoms, data recovery and legal liabilities and negotiators, Reuters noted. Meanwhile, cybercriminals are increasingly launching ransomware attacks designed to cause long-lasting problems and demanding larger ransoms than ever before.
MSPs, SMBs and Cyber Insurance: New Developments
Still, new cyber insurance options are emerging for MSPs and small business customers. Examples include:
- Evergreen Services Group this month launched a cyber insurance service for MSPs and their customers. The service offers MSPs another channel of protection and coverage that they can offer to their customers, Evergreen Private Equity Analyst Dylan Lee told ChannelE2E. It allows companies to access cyber insurance coverage from MSPs and guard against cyberattacks and data breaches.
- Cowbell Cyber, a startup focused on Artificial Intelligence (AI)-powered cyber insurance for SMBs, has launched the Cowbell Prime 100. It’s designed for insurance agents to issue personalized cyber policies with up to $5 million in Limits.
Additional insights from Joe Panettieri.