The cyber insurance investigation into the loss potential of the recent ransomware attack on one of the world's largest aluminum producers, Norsk Hydro, has begun. It is likely to generate increased interest in obtaining cyber insurance by manufacturers and other organizations driven by the attention raised by 2017's NotPetya worm. While the cost for the Norsk Hydro "LockerGoga" attack is yet to be calculated in full, we have already seen, as with NotPetya, a dramatic loss of income and intense business disruption.
But can cyber insurance do enough to limit the fallout for the victims of ransomware attacks? If not, how can proactive businesses ensure they are financially protected after a breach?
Calculating the CostsThe effect on the IT and insurance industries from the most recent wave of cybercrime continues to grow as businesses disclose silent cyber impacts, as well as affirmative losses from WannaCry/NotPetya. The latest reports from Property Claim Services (PCS) put the loss from NotPetya at over $3.3 billion, and it's still growing. The Norsk Hydro event is currently being evaluated by PCS to ascertain whether it meets the global cyber event designation, which would require the attack to generate a re/insured loss of at least $20 million. Recent estimates from the company suggest $40 million in losses.
Despite the payouts, for some businesses, ..
Support the originator by clicking the read the rest link below.