The rampant cases of ransomware are forcing cyber insurers to rethink their ways. Today, no sector can claim immunity against ransomware. And these attacks have become challenging to handle. They are not only expensive but have led to the fall of even the most prominent companies. Even worse, cyber insurers are feeling double the trouble.
The insurance providers are forced to pay more insurance payouts to ransomware victims. Added to the rate at which these events are occurring, it only gets expensive. That is why AXA France, one of the leading cyber insurance providers, made one thing clear. It said that new policyholders would not get insurance reimbursement for these attacks.
Cyber Insurers Comes Together
In a rare turn of events, insurance companies have decided to work together. Indeed, the industry has felt significant pressure from ransomware attacks. Yet, cyber insurers are determined to remain strong in the face of all these.
So, providers like AXIS, Beazley, Chubb, and The Hartford have joined forces. These are some of the steps they believe will help them understand cyber dynamics and risks. Ransomware has stood the test of time to be the biggest threat today.
CyberAcuView CEO Mark Camillo highlighted the vast transformations witnessed in cyber insurance. For instance, cyber insurance’s focus was to protect information and credit data. But this has changed over time. The attackers have developed more innovative ways to make money.
Cyber Insurers Call for Better Strategies
Initially, cyber insurance was a reserve for specific companies. These are agencies that dealt with sensitive information like banks and health care. In the past couple of years, cybercrime has evolved beyond this scope.
Cyberattacks are now common in every sector with vast severity. This means the cyber insurers must adopt efficient strategies to handle the claims. Consequently, every insurer is introducing extra ransomware insurance techniques beyond the standard rule.
Most cyber insurers are looking to dive deeper to understand the nature of these attacks. These include assessing the areas that made the company vulnerable. Furthermore, they also advise on the perfect ways to enhance security.
Some cyber insurers are limiting their policies. For example, they decline to payout policyholders with insufficient security measures. So, the biggest burden lies on the insured organizations to improve their defense mechanism.
With the ever-evolving cyberattacks, cyber insurance is also changing. Even though the insurance transformations may seem demanding, they are for the best. Therefore, it is highly recommended that organizations adopt the best security methods. That way, they will be safe and also get that deserved cover should the unexpected happen.