Securing Cyber Insurance Starts with Risk Mitigation
Cybersecurity risks, namely from ransomware attacks, have risen to heights companies and public entities can no longer afford to ignore.
The COVID-19 pandemic has ushered in a surge of ransomware attacks, a type of cyber attack where companies are locked out of their data management systems and charged massive fees by cybercriminals to unlock them. In 2020 alone, roughly $350 million in ransom was paid to cybercriminals – a more than 300% increase from 2019, according to the Department of Homeland Security. Other sources put the worldwide ransom payments for 2020 in the billions of dollars. Furthermore, the weekly average number of ransomware attacks increased nearly 1,000% in June 2021 from the previous year.
It can be hard for companies, particularly smaller businesses that do not perceive these attacks as a real threat to them, to rationalize spending money on cybersecurity risk management. But ransomware attacks are happening to businesses of all sizes and in every industry. Municipalities, public entities and health care systems also face a growing risk. Implementing a risk management framework has become essential for these organizations.
Many companies and public entities are now scrambling to secure cybersecurity insurance coverage to better protect themselves. Cyber insurance has been on the market for decades, but only in the last five years has the demand for this coverage risen to match the severity of today’s risk environment. In today’s hardened marketplace, it’s become increasingly difficult to secure cyber coverage.
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