5/2/2023 0 Comments Chicago in the crosshairs![]() “The price has to match the risk,” said Michael Phillips, chief claims officer at the San Francisco cyber insurance firm Resilience and a co-chair of the public-private Ransomware Task Force.Ī policy might now specify that reimbursement for extortion payments can’t exceed one-third of overall coverage, which typically also encompasses recovery and lost income and can include payments to PR firms to mitigate reputational damage. In a bid to turn back ransomware-related losses - Eskins said they amounted to about 40% of cyber insurance claims in North America last year - policy renewals are carrying new, stricter rules or lowered coverage limits. In February, the month-to-month jump was 32%, in March it was 39%. and Canada from the previous month, said Gregory Eskins, an analyst at top commercial insurance broker Marsh McLennan. The third, in southern California, acknowledged being hobbled for a week.īy the time the Colonial Pipeline and major meat processer JBS were hit by ransomware in May, insurers were already passing higher coverage costs to customers.Ĭyber premiums jumped by 29% in January in the U.S. Of the three insurance brokers that ransomware gangs claimed to have attacked in recent weeks, posting stolen data on their dark web sites as evidence, two, in Montreal and Detroit, did not respond to phone calls and emails. The criminals, from the RagnarLocker gang, apparently never posted information about the attack on their dark web leak site, suggesting that Gallagher paid. ![]() Nor would she say whether Gallagher paid a ransom. Company spokeswoman Kelli Murray would not say if any cyber insurance policy contracts were on compromised servers. Although it was hit in September, only this past week (June 30) did it disclose that the attackers may have stolen highly detailed data from an unspecified number of customers - from passwords and Social Security numbers to credit card data and medical diagnoses. In a regulatory filing with the Securities and Exchange Commission, CNA also said that its losses might not be fully covered by its insurance and “future cybersecurity insurance coverage may be difficult to obtain or may only be available at significantly higher costs to us.”Īnother major insurance player hit by ransomware was broker Gallagher. It said only that systems where most policyholder data was stored “were not impacted.” Nor would it say what or how much data was stolen. He suggested it actively targets insurers for data on their clients.ĬNA would not confirm a Bloomberg report that it paid a $40 million ransom, which would be the highest reported ransom on record. Less than a week earlier, the cybersecurity firm Recorded Future published an interview with a member of the Russian-speaking ransomware gang, REvil, that is skilled in pre-attack intelligence-gathering and happens to be behind the current attack. cybersecurity underwriter last year, saw its network crippled in March. Chicago-based CNA Financial Corp., the seventh-ranked U.S. But it is so far apparently alone in the industry, and governments are not moving to outlaw reimbursement.ĪXA is among major insurers that have suffered ransomware attacks, with operations in Thailand hard-hit. In May, the major cyber insurer AXA decided to do so with all new policies in France. Pressure is building on the industry to stop reimbursing for ransoms. It’s not clear how the single biggest ransomware attack on record, which began Friday, will impact insurers. So the cost-benefit equation the insurers initially used to figure out whether or not they should pay a ransom - it’s just not there anymore,” he said. “The ransomware groups got way too greedy too quickly. It’s likely to be cheaper for all involved. – Ransomware attack before holiday leaves companies scramblingįabian Wosar, chief technical officer of Emsisoft, a cybersecurity firm specializing in ransomware, said the prevailing attitude among insurers is no longer: Pay the criminals. ![]()
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