The Fight Against Ransomware
Cyber insurance can help in the battle against cyberattacks
Is cyber insurance incentivizing cyber attacks? Is the insurance industry benefitting from the rash of ransomware attacks on companies around the world? Critics are vocal in their criticism that cyber insurance is part of the problem, not the solution.
The truth is that ransomware attacks against businesses occur for one reason only: because they are constantly successful. The ones benefiting from cyber attacks are cyber criminals.
Cyber insurance is, in fact, a valuable tool in the ﬁght against ransomware and other cyber threats. Cyber insurance is a traditional method of mitigating risk by pooling it among the insureds similarly at risk to spread their potential losses.
So what do the critics get right? Just one important point: cyber insurance does pay claims. For more than a decade, cyber insurance policies have reliably paid claims for ransomware, network interruptions, data breaches, and related liability. That is one of its specific purposes.
But cyber insurance is valuable before an attack, because the insurance underwriting process raises awareness of cyber threats, identiﬁes how companies should be responding, and educates insureds.
Companies are ﬁghting hackers on an uneven playing ﬁeld, where defense is much harder than offense. Cyber insurance has proven to be a valuable partner in that ﬁght. Given the stakes, companies should be eager, and increasingly have been eager, to take all the help they can get. They know that cyber insurance is part of a sensible and robust solution to this modern threat..