A cyber insurance policy is a necessary element in a company’s risk mitigation strategy. However, obtaining/renewing a policy is becoming more difficult, and premiums have drastically increased. Direct-written premiums increased by 92% in 2021 according to the National Association of Insurance Commissioners.
The primary reason for the hardening of the cyber insurance market? Ransomware. Since ransomware accounts for 75% of all insurance claims, premiums are directly correlated with the 148% increase in attacks through Q3 2021 as well as higher ransom demands and recovery costs.