During the past year, there has been a substantial shift in the already challenging cyber liability marketplace.
The changes, especially scrutiny around supply chain coverage and systemic losses, was precipitated by the Solarwinds incident of December 2020 during which numerous entities, including government and businesses, were compromised.
According to Fitch Ratings, cyber liability incidents have been increasing in severity and frequency for the past few years, with a 73% loss ratio in 2020. I suspect 2021 will be worse with the amount of catastrophic events that already have occurred, such as the record-setting $40 million extortion paid by CNA; concerns over potential disruption to food supply chain by the JBS USA meatpacking company ransomware incident; and the Colonial Pipeline, which disrupted fuel supply to the East Coast.
What was the cause of the Colonial Pipeline incident? Lack of multi-factor authentication for an account.
With the increase in cybersecurity claims, insurance carriers are scrutinizing cybersecurity controls and rigorously underwiring every risk.
As a result, multi-factor authentication and cyber hygiene are crucial to obtaining coverage. So, what…
