In report recently issued by insurance giant Aon, policyholders can expect 20% to 50% rate increases for cyber coverage throughout 2021 as trends that began last year continue at an accelerated pace.
“To maintain a commitment to long-term stable cyber capacity, insurers are reviewing areas in their portfolio where underwriting action is needed, and reevaluating capacity deployment, specifically as it relates to ransomware losses,” the report said.
The report noted trends to watch include errors and omissions exposures stemming from multiple areas including:
- many organizations’ accelerated digital transformation initiatives;
- potential vulnerabilities from the use of Remote Desktop Protocol (RDP) software;
- breach regulations, as the regulatory environment continues to grow in complexity;
- cyber extortion, with ransomware attacks evolving to include the threat of exposure of sensitive data on the public internet in addition to the encryption of sensitive data; and
- vendor risks, because of organization’s reliance on third-party technology and back-end applications.
The report said ransomware incidents increased 486% between 2018’s first quarter and the fourth quarter of 2020, while data breach and privacy events declined last year.
How BW Cyber Services Can Help
BW Cyber Services is intimately aware of the many cybersecurity challenges facing the asset management industry and can assist to identify cyber risks and related strategies to mitigate those risks – most notably associated with wire fraud, ransomware, and data losses. For more information, go here to learn more about our services. If you have any questions or would like more information, please contact BW Cyber Services at email@example.com.