Cyber-Insurance Payouts Soar 230% in UK>
Info Security Magazine – Phil Muncaster
The UK cyber insurance sector saw a significant increase in payouts, totaling £197m ($258m) last year, which is a 230% rise compared to the previous year
This increase is attributed to more sophisticated cyber threats, particularly from malware and ransomware, which made up 51% of claims
Insurers issued 17% more policies during this period but are enforcing stricter security requirements for policyholders
Despite an uptick in claims and cyber attacks, some reports indicate that premiums have decreased due to improved risk management practices among organizations
There are ongoing discussions regarding regulatory changes, such as a government ban on ransom payments, which may impact insurers’ requirements further
Experts emphasize the necessity of cyber insurance as part of a comprehensive risk management strategy
Important items to note:
– Payouts in the UK cyber insurance sector increased to £197m, a 230% rise from the previous year.
– Malware and ransomware comprised 51% of claims, up from 32% in 2023.
– Insurers issued 17% more policies compared to the prior year.
– Stricter security requirements for policyholders are being enforced.
– Even amidst rising cyber threats, some insurers reported double-digit reductions in premiums due to robust risk controls.
– A proposed government ban on ransom payments could alter insurance requirements.
– Concerns exist about the cyclical nature of ransomware payments facilitating further attacks.
– The report aligns with a prior Marsh study indicating an increase in claims among UK companies.
Link: https://www.infosecurity-magazine.com/news/cyberinsurance-payouts-soar-230-in/