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Cyber Insurers Raise Rates Amid a Surge in Costly Hacks

  • 1.  Cyber Insurers Raise Rates Amid a Surge in Costly Hacks

    Posted May 19, 2022 09:27:00 AM
    After the May 2021 hack of the colonial pipeline, turbulence in the #cyberinsurance market kicked into high gear as the rates have increased to reflect a realignment of a relatively new market that is maturing quickly. For companies applying for coverage, stricter criteria are required for those applying, and a demonstration of basic cyber hygiene, including #MFA is mandatory.

    Scarce literature exists on the #actuarial methodology for assessing and mitigating #cyberrisk, as #insurance was only recently applied to the cyber world. Due to the lack of data and peculiarities of cyber insurance contracts with respect to the classical non-life insurance ones, cyber insurance faces several unique challenges to its development.

    https://www.wsj.com/articles/cyber-insurers-raise-rates-amid-a-surge-in-costly-hacks-11652866200




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    Olivia Rempe
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  • 2.  RE: Cyber Insurers Raise Rates Amid a Surge in Costly Hacks

    Posted May 20, 2022 10:55:00 AM

    "Many carriers are now requiring potential clients to demonstrate that they practice at least basic cyber hygiene, including measures such as multifactor authentication.

    'Now, if you can't demonstrate certain baseline controls, the vast majority of the marketplace is going to say no,'"

    That's pretty cool. Hopefully that gets some more teeth. Would definitely galvanize a board/leadership to prioritise a mature security program!



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    Mark Reedy (he/him/his)
    Warlord
    Uptycs
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