A look at the 2022 cyber market
With cyberattacks at an all-time high, Tim Zeilman of HSB discusses the risks carriers and their clients should be watching in the coming year.
Cybercrimes have increased significantly over the last year. A recently released IBM study showed that the average cost of a data breach for organizations with fewer than 500 employees was almost $3 million per incident in 2021. The Anti-Phishing Working Group, a global industry, law enforcement and government coalition, found that the number of phishing attacks has doubled since early 2020. And approximately 60% of small businesses that suffer a cyberattack go out of business within six months of being hacked. The risks for businesses of any size are increasing, and cyber insurance is as critical as general liability, E&O and other types of business-related coverage.
In the latest edition of Insurance Speak, Tim Zeilman, global cyber product owner at Hartford Steam Boiler, which is part of Munich Re., helps to put some of these trends into perspective and highlights what carriers and their clients should be monitoring in 2022.
Cyber activity hit an all-time high over the last year or so. Banks, in particular, have seen a huge surge in ransomware attacks, increasing about 1,318% over 2020. Zeilman confirmed that “ransomware is the big story” when it comes to cyber risks. “It is a successful business model and works for the bad guys,” he explains.
Cyber ransomware demands have grown since 2018 and bad actors that want to be paid more are leveraging this particular business model. “If you have the skills, this is the most lucrative way to put them to use,” finds Zeilman. He also believes that ransomware will continue to be the big story for the foreseeable future.
For more on topics such as cyber gangs, the legal issues associated with ransomware attacks, considerations in paying or not paying a ransom and what steps businesses can take to help mitigate their cyber risks, listen via the link above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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