The growing number of ransomware attacks has burdened many oganizations, but it has also greatly impacted the cyber insurance industry, which found itself having to cover large ransomware demands. This called for a chenge in policies but also the need to enhance cyber insurance with cybersecurity knowlege.
In this interview with Help Net Security, Odin Olson, VP of Alliances for Arctic Wolf, talks about the impact of ransomware on cyber insurance and the connection between security operations and the insurance industry.
Ransomware attacks have reached unprecedented levels lately. How has this impacted the cyber insurance industry?
Not only have ransomware attacks spiked, the amount of ransom demanded has grown exponentially—to somewhere between $50 and $70 million dollars. Cyber-insurers can’t cover “whatever amount the hacker demands”—so major policies lost money. Insurers have responded by raising premiums, restricting coverage, or even getting out of the cyber-insurance game altogether in vulnerable markets.
Prior to 2017, most insurers covered ransomware under traditional property and casualty policies. Beginning in 2020, several prominent cyber…
