As Cyber Attacks Increase, Insurers Face Rising Losses
Amid rising losses and increasing claims on cyber insurance, companies that provide insurance against online hackers are facing growing risks, says Fitch Ratings.
In a new report, the rating agency said that while cyber insurance has been a profitable line of business for several years, an increase in network intrusions, phishing, and denial of service attacks is expected to increase the volume of claims — and the average cost per claim.
In particular, Fitch reported that ransomware events have risen by 400% over the past two years.
‘Continued growth in cyber intrusions and ransomware events may pressure the durability and long-term profitability of the cyber insurance market and insurers’ internal management of cyber threats,’ it said.
Already, rising losses have caused cyber insurance prices to rise and policy terms to tighten this year.