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The ransomware threat vector was only ever going to increase in popularity, as it moved from a specialist threat to a commoditized service. When a child can run a ransomware attack through RaaS; companies ignore cyber risk; and there are not enough resources available to address the cyber skills gap. Ransomware was only going to increase in frequency, severity and popularity.
Once an actor gains access to a network, they get to chose the payload and if they go undetected, the outcome. Be it data theft, ransomware, data destruction, or more concerning OT cyber attacks that affect physical infrastructure or human life. The real concern one has is with the increase in threat complexity, where do threats go from here.
As one wrote last week while there is opportunity to grow the cyber insurance market, there are few levers the industry can use to reduce its exposure to under writing risk and claims. Other than exclusion clauses and reduced coverage, leaving the insured with an coverage gap, they likely cannot afford. There is also the issue of capital that is looking for a solution, will capital markets accept the risk, when insurers do not understand the risk and have struggled to manage it.
Are there answers to the questions I posed last week:
1. How will the cyber insurance industry respond to the increased threat posed by cyber attack?
2. How will the industry respond as governments move to regulate cyber risk management?
Ransomware does not look as though it is going away anytime soon.
Ted Dziekanowski Rachel V. Rose, JD, MBA Stephen Pitt-Walker, JD, FGIA
#cybersecurity #cyberinsurance #cyberriskmanagement #ransomware #cyberattack
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