Cybersecurity experts have predicted an increase in ransomware attacks since last year, and the recent WannaCry incident confirms what they and many insurers have feared — that a large-scale attack could involve entities on a global scale.
With an estimated 300,000 computers impacted in 150 countries, the attacks affected multiple business sectors, hospitals and universities. "This type of attack is like letting a virus into the wild," explained Christina Terplan, a San Francisco-based partner with the international law firm Clyde & Co. "The attack is indiscriminate and doesn't affect just one company or sector, different sectors and geographies are vulnerable."
|Business interruption can be significant
"Watching this story continue to unravel, has truly highlighted the need for cyber insurance," added Bill Kelly, senior vice president, E&O underwriting of Argo Group. "Any company can experience a vulnerability no matter how prepared they think they are. While ransomware can result in a company paying small, very random amounts, business interruption can be much more significant and can potentially cost millions."
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Patricia L. Harman
Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]
