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The Tightening Ransomware Insurance Market
February 28, 2022
Industry reports show the loss ratio for ransomware policies is approaching 70 percent. says this post from law firm Dickinson, Mackaman, Tyler & Hagen.“Losses at this level are not sustainable,” says the writer, “so something has to change.” What’s going to change, he says – where it hasn’t already – is the cost of this insurance (for those companies that continue to offer it). He says he expects increases of “as much as 50 to 100 percent,” along with a reduction in coverage limits and the possibility of coverage disputes. Insurers, he says, “are now taking a stricter view of whether coverage is available to cover ransomware, and changing what policies cover in order to limit claims. This can leave insureds with a difficult decision regarding whether to pay ransom demands. Either the insured can pay the ransom and risk not having insurance coverage, or decline to pay the ransom and risk losing their data.”
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