“So I think business’s perceptions have changed, their perceptions now mirror more what the reality is, which is that we’re 100% reliant upon our data, and our systems. And if we don’t have access to those, we simply can’t work – whereas our physical buildings and premises have become slightly redundant.”
Read more: CFC provides advice to brokers on reputational harm cover
Looking at CFC’s cyber claims, Newman noted that the big change has not been increased claims frequency, which is always ticking up when it comes to cyber, but rather the changing nature of criminal activity. Around 18 months ago, the focus was on business email compromised scams such as wire transfer fraud and social engineering, and now the focus is on ransomware. There is an interesting juxtaposition between the real-word virus that everyone is so focused on right now and the behind-the-scenes epidemic taking place in the digital world.
The problem with ransomware, he said, is not just that rogue-nation states and criminals are stealing billions of dollars from businesses, but also that the economic damage they create by doing so is an…
