No insurance premiums saw greater growth in the second quarter of 2021 than those related to cybersecurity. According to the Council of Insurance Agents & Brokers, cyber insurance premiums grew more than a quarter (25.5%) during that period. That’s well above the 17.4% increase witnessed by umbrella insurance and an average of 8.3% growth across all premiums. In part, that’s because of ransomware. What can your business do about it?
What’s Behind This Growth of Cyber Insurance Premiums?
No other factor had as much of an impact on cyber insurance premiums for Q2 2021 as ransomware. Part of the reason for this has to do with the growth of ransomware attacks in recent months. According to ITProPortal, global ransomware volume reached 304.7 million attack attempts in the first half of 2021. That’s 0.1 million more attempted infections for all of 2020. Nearly two-thirds (64%) of those campaigns involved the Ryuk, Cerber or SamSam families, with government, education, health care and retail groups seeing triple-digit growth in the number of ransomware attacks that affected them during that period.
At the same time, ransomware costs have risen. In its Cost of a Data Breach Report 2021, for instance, IBM observed that ransomware attacks cost an average of $4.62 million. Those damages, which included escalation, notification, lost business and response (but not ransom payments), eclipsed the $4.24 million price tag for the average d ..
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