Cyber Insurance Claims Explode In Severity

 Tuesday, April 27, 2021

 Insurance Business

Ransomware is a dominant source of concern in the cyber insurance community today.

In recent years, there has been a significant uptick in the frequency and severity of ransomware attacks, impacting businesses of all sizes and in all sectors.

Hackers have grown more sophisticated and targeted in their attacks, aiming for larger organizations that can afford bigger ransoms. As a result, cyber insurance claims have exploded in severity.

‘A couple of years ago, we saw very few ransomware claims, and if we did, the demands were typically around $8,000, $10,000, or maybe $30,000 at the higher end,’ reflected Tamara Ashjian, Director of Claims, Tokio Marine HCC ââéČ‘ Cyber & Professional Lines Group.

‘Paying the ransom was the rational decision as it would be considerably more expensive for the insured to be out of operation, incurring business interruption losses and/or other expenses to recreate digital assets.’
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