Online attacks are becoming bigger, more damaging and pricier 

Howden Group has just published a report “Cyber Insurance: A Hard Reset”. 

The report looks at how three key factors are driving the cyber insurance market today, namely rampant ransomware attacks, higher rates and shifting regulation – the three Rs.

• The frequency and severity of ransomware incidents have risen considerably over the last year, as cyber criminals deploy new tactics and techniques to achieve one simple goal: to make money.
• Proprietary research conducted by Howden shows how superior mitigation and response measures can support shareholder value and minimise reputational risks

Labelled the ‘digital pandemic’, the report shows that ransomware is now the predominant cyber threat confronting businesses of all sizes. Industry data reveal that the number of ransomware attacks worldwide increased by 170% (4Q20 compared to 1Q19). The severity of incidents has been even more impactful: for U.S. companies that decided to pay a ransom in 1Q21, the average payment was up by more than 400% compared to FY2019. The average cost of ransomware remediation globally has also increased in 2021, rising to USD 1.85 million from USD 700,000 in 2020. Average remediation costs across a number of major markets, including the United States, now exceed USD 2 million. 

The proliferation of accessible and relatively low cost, ransomware kits, or ransomware-as-a-service (RaaS), combined with a new attack method involving both data encryption and the publication of stolen data, otherwise known as double extortion, has seen the frequency and severity of attacks soar.