Cyber insurance can play a critical role in reducing enterprise concerns about ransomware attacks if one can find affordable insurance. In the developing cyber insurance market, insurers do far more than reimburse victims. They often offer proactive risk mitigation resources, along with critical services such as breach response support to get businesses back up and running quickly after being hit with a ransomware attack.
Unfortunately, in 2021, it has become more difficult to even get cyber insurance coverage. Premiums have risen sharply, and renewal premiums went up 11.1% by the end of 2020, even as sublimits — limitations in an insurance policy’s coverage of certain losses — dropped. Many organizations can’t get a quote at all. Behind the scenes, these changes are being driven by skyrocketing losses within the cyber insurance industry, which faced a 25% increase in loss ratio (losses insurers are subject to due to paid claims as a percentage of the premiums they earn) between 2019 and 2020.
With increasing ransomware challenges facing enterprises this year, businesses need to know how to buy the right cyber insurance coverage at a reasonable rate, what to look for in…
