Cyber Insurance. And The War on Ransomware.
The content of this blog post is based on our recent webinar that you can watch here.
Cyber insurance is a must-have cyber defense weapon for all organizations trying to mitigate modern security threats. But the exponential increase in ransomware has created an industry chain reaction – Insurance providers are leaving the market, premiums are on the rise, more security controls are being required, and organizations are left scrambling.
As cyber criminals continually advance and develop new tactics to disrupt IT infrastructures, it’s critical that experts, businesses, and insurance companies work together to slow down the rise of cybercrime.
The Rise of Ransomware and the Industry Chain Reaction
Ransomware attacks are rising at an alarming rate, and businesses of all kinds are threatened by this cybercrime. One reason for the recent growth of ransomware is that more and more businesses are digitizing their valuable data, which allows for more accessibility and therefore more opportunity for human error.
Essentially, this transition to digital business processes makes it easier for cybercriminals to gain access to company data. Another reason for the rise in ransomware attacks is that many businesses don’t have comprehensive cybersecurity measures in place to defend themselves against even basic hacking attempts.
As a result, when a ransomware attack does occur, businesses are often left with no choice but to pay the ransom in order to get their data back. This only serves to encourage cybercriminals, who know that there’s a good chance they’ll be able to get away with their crimes.
According to the Global Insurance Market Index U.S., cyber insurance prices have increased by 79% from last year. The cost of cyber insurance has soared due to the rise in cyber-attacks and threats. Due to these circumstances, insurance companies are asking for more in-depth information about organizations’ cyber policies and procedures, and those that don’t have the level of security needed face higher premiums and less coverage.
How Businesses and IT Partners Must Partner Together
In order to protect businesses from ransomware and other cyber threats, it’s important for businesses and their IT partners to work together. By collaborating, businesses can ensure that comprehensive cybersecurity measures are in place to defend against attacks.
IT partners can also help educate businesses about the importance of having a robust incident response plan in place in the event that an attack does occur. This plan should include information about how to contact the appropriate people, what data needs to be backed up, and what steps need to be taken to minimize the damage caused by an attack.
The Role of Cyber Insurance in Incident Response Plans
Cyber insurance can play a critical role in incident response plans. In the event of a ransomware attack, cyber insurance can help businesses recover lost data and get back up and running as quickly as possible.
Cyber insurance can also help businesses cover the costs of hiring a professional to clean up any malicious software that might have been installed on their systems as part of the attack. In some cases, and depending on your policy, cyber insurance may even cover the cost of the ransom itself.
The Increasing Controls Insurance Providers are Requiring
As the threat of ransomware and other cyber threats continues to grow, insurance providers are starting to require businesses to take more comprehensive security measures in order to qualify for coverage.
For example, many insurance providers now require businesses to have incident response plans in place before they will provide coverage. This helps to ensure that businesses are prepared in the event of an attack and can take steps to minimize the damage caused.
Managed Security + Cyber Insurance Mitigates Cyber Risk
In the current cybersecurity threat landscape, it’s important for businesses, IT partners, and insurance providers to work together to fight the war on ransomware. By taking comprehensive security measures and being prepared with incident response plans, businesses can minimize the damage caused by an attack and be ready to quickly recover lost data.
Cyber insurance can play a critical role in these plans, but insurance providers are increasingly requiring businesses to take more security measures before they will provide coverage. ISG Technology can work with your company to ensure you have the proper security controls in place to not only proactively protect your infrastructure but also prepare you in the event of an attack. Give our team a call today or visit our contact us page to schedule a consultation with one of our cybersecurity experts.