Premiums are continuing to increase for cyber insurance even as rate increases for other lines are slowing down. The increase in ransomware attacks and higher ransom demands is a principal reason.
As posted by insurance broker Arthur J. Gallagher (https://www.ajg.com/us/news-and-insights/2021/apv/cyber-insurance-fight-against-ransomware/) insurers are increasing premiums by 15-50% and imposing sub-limits and exclusions. Underwriters are asking more questions and requiring supplemental applications to cover ransomware.
Their principal concerns: how are insureds
- Keeping attackers and malware out of their network.
- Detecting network intrusions and suspicious behavior.
- Protecting user and privileged accounts, and limiting attackers' movements.
- Preparing for, responding to and mitigating an attack.
When renewing cyber policies or purchasing insurance for the first time, be prepared to answer tough questions about security. And be ready for "sticker shock".