Ransomware attacks have been a constant news story over the last year with a 400% increase in attacks. This is an obvious concern for the businesses that are attacked, but will also have repercussions on other businesses as cyber insurance policies come up for renewal. An increase in attacks means an increase in claims, which has a significant impact on insurers. In 2020, the direct loss ratio for standalone cyber rose to 73% – an unsustainable number for the industry.
Businesses will feel this moving forward as premiums increase with renewal. In January premiums jumped by 29%, 32% in February, and 39% in March. On top of the increase in renewal rates, coverage limits are being lowered and policies are being dropped. In order to continue coverage companies can expect increased requirements from their insurers to maintain coverage. This means that while the cost of insurance is going up, companies will find it harder to maintain coverage.
Companies will need to pay more attention to their data, how it is maintained, and how it is protected. Simply assuming that a company is protected is not enough moving forward, companies will need to actively manage their data risk. Akita Data can assist companies in managing this data risk to maintain insurance coverage in this volatile market. By understanding your digital risk, a company can take steps to manage that risk and maintain insurance coverage.