Ransomware is now the predominant cyber threat confronting businesses of all sizes, according to Howden. The number of ransomware attacks worldwide spiked by 170% between Q1 of 2019 and Q4 of 2020, and the severity of incidents has been increasing as well.
For US companies that decided to pay a ransom in the first quarter of 2021, the average payment was up more than 400% from FY2019. The average cost of ransomware remediation has also increased, rising to US$1.85 million this year from US$700,000 in 2020. Average remediation costs in several major markets, including the US, now exceed US$2 million, according to the report.
The availability of accessible and relatively low-cost ransomware kits, or ransomware-as-a-service (RaaS), combined with a new strategy that involves both data encryption and the publication of stolen data, known as double extortion, has caused the frequency and severity of ransomware attacks to skyrocket, Howden said.
These factors have driven the largest medium-term rate hike across the entire insurance market as carriers scramble to get ahead of rising loss costs. Global cyber insurance pricing…
