CYBER TRENDS
CAPACITY Market capacity , while still high with over 150 unique markets actively writing cyber insurance domestically and abroad ( UK & Bermuda ), is showing some signs of pull-back due to losses , primarily driven by ransomware events . Many carriers are more closely evaluating their $ 5 million and $ 10 million limits , with some backing off anything higher than a $ 3 million limit in small business .
LOSSES The year 2020 saw an increase in ransomware , business email compromise , and social engineering claims . Average ransom paid in 2018 of $ 28,920 increased to $ 302,539 in 2020 . Associated coverages such as business interruption and incident response were affected as well , driving losses higher across the entire cyber landscape .
PRICING We are seeing signs of change in what has traditionally been a very soft market for cyber insurance . Many carriers are announcing pricing increases of 20 percent or more across their entire books . Some industry sectors — including healthcare , financial services , and education — are seeing even higher increases . New insurance companies to the market ( who do not yet have market share high enough to feel the impact of the increasing frequency and severity of ransomware claims ) continue to price aggressively .
RANSOMWARE FACTS
• Almost three quarters of ransomware attacks result in the data being encrypted . Fifty-one percent of organizations were hit by ransomware in the last year . The criminals succeeded in encrypting the data in 73 percent of these attacks .
• Ninety-five percent of organizations that paid the ransom had their data restored .
• Paying the ransom doubles the cost of dealing with a ransomware attack . The average cost to rectify the impacts of the most recent ransomware attacks ( considering downtime , people time , device cost , network cost , lost opportunity , ransom paid , etc .) was $ 732,520 .
• Most successful ransomware attacks include data in the public cloud . Fiftynine percent of attacks where the data was encrypted involved data in the public cloud . +
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