Ransomware Attacks and the Effects on the Cyber Insurance Market

Throughout the COVID-19 pandemic, hackers have been on a steady rise with their malicious attacks. In these attacks, some hackers hold companies’ systems or data hostage for self gain. Due to the increase in attacks, the cyber insurance market has directly suffered. 

The Evolution of Ransomware

Although ransomware has been around since the early 1980s, it took many years for it to become a menacing issue to companies and the government. Back in 1989 when ransomware was newer, attacks were as simple as floppy disk viruses that demanded users to mail money to a location. However, now we encounter hardly traceable ransomware attacks causing major losses. With updating technology, it only gets worse. On top of that, COVID-19 posed as a perfect environment for the ransomware threats to get worse. As many jobs that deal with sensitive information shifted to running duly online, there became an excess in targets for hackers. During COVID-19, hackers began “big game hunting” meaning they targeted businesses they believed would be able to hand over more money. The problem hasn’t slowed down from the beginning of the pandemic, and it is an important topic that all businesses need to be aware of. 

Cyber Insurance Market Takes the Hit

Since the beginning of hackers big game hunting, cybersecurity insurance practices have had to make quite a few adjustments to their operations. In the past, practices had covered ransomware payments because they were usually minute. Due to the massive increase in ransomware attack prices, paying it all is not an option. In order to keep up with cyber crime, cybersecurity insurance providers have tightened underwriting controls, and cut their limits. The cyber insurance market is still struggling, with no major relief in sight. 

Business professionals: Are you protected against cyber crime?