As reported by the Financial Times, the cost of cyber insurance has risen steeply over the past year. According to Marsh, the price of cover in the US grew by 130 per cent in the fourth quarter of 2021 alone, while in the UK it grew by 92 per cent. That has increased pressure on companies who are facing cost inflation in other parts of their business.
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Pay outs compensated by insurance companies have become a driving factor behind the surge of ransomware attacks we have seen over the last two years. When payments are made, the ransomware business cycle continues meaning more companies will inevitably be attacked. The increasing demands and often guaranteed payments make the problem more difficult. Cyber insurance is just as vital as business insurance but must not be relied upon in the same way. Many organisations view such hefty demand payments as part of business, but as a result providers are increasing their premiums, which could leave some uninsured against this growing problem.