Cybersecurity insurance is no longer a luxury. As attacks have accelerated — and become more costly — the idea of hedging against a breach has gone mainstream. The global cyber-insurance market now stands at $7.8 billion, but it's projected to reach $20.4 billion by 2025, according to an October 2020 report from ResearchAndMarkets.
Indeed, companies are incorporating cybersecurity insurance into their overall business strategies, says Alexander Chaveriat, chief innovation officer at Tuik Security Group. But – and should we really be surprised? – cybercriminals have also recognized that where there's insurance, there's opportunity.
"Many gangs do reconnaissance before they pull the trigger on a ransomware attack," Chaveriat explains. "They'll see that the business has $2 million in cyber-insurance, and so they make this their ransom."
At the center of all of this is a harsh reality: Many organizations are opting to pay the ransom. Their desire to get systems up and running fast rather than deal with the time and expense of restoring data — even when the data exists — is fueling decision-making. However, this approach is also driving up the price of policies and contributing to more aggressive tactics. A 2019 ProPublica report notes that insurance companies are contributing to a rise in ransomware attacks by paying ransoms as large as six or seven figures.
Money for NothingThe uptick in ransomware over the past few years is staggering. Cybersecurity firm Sophos reports that 51% of organizat ..
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