A decade ago, the thought of needing cybersecurity insurance may have been at the bottom of the pile of priorities for business leaders. Yet today, it has risen to become a necessity in how organizations respond to costly cyberattacks like ransomware, which is the main threat. In fact, not a day goes by that we don’t see a ransomware attack make the headlines as just recently, the world’s largest meat supplier was impacted and forced to pay $11 million.
While it is always discouraged for businesses that are ransomware victims to actually pay the ransom, many still do. Not too long ago, the average ransom paid was below $20,000 but today we are witnessing multi-million-pound pay-outs. And this is taking a toll on the insurance providers as they have quickly learned how expensive paying out ransomware attacks can be.
Of course, the world was a simpler time a decade ago, where insurers were offering protection to organizations against cyber threats as claims were rarely made. Alarmingly, few questions were asked as to how secure that company was in the first place.
Historically and more broadly, insurance in any industry has always been highly correlated with…
