Last month, Lloyds of London announced that it would no longer honour cyber-insurance claims caused by “state based actors.” This includes almost all ransomware attacks that have made the news this past year.

As a major insurer worldwide, this will likely have a cascade effect on smaller insurance companies. Other major insurers like AON are expecting 2022 premiums to rise by 20-50% for those companies who still can get cyber insurance.

While insurance is an important business asset, it is not a replacement for an effective cybersecurity assessment and strategy. Businesses now need to manage their Cybersecurity risks and not just insure against them. Not managing them will only increase your costs while decreasing your coverage. 

A Cyber Security plan doesn’t have to be long, difficult, or expensive. It typically involves a few key activities that results in a roadmap of how to decrease your risk and protect your business.

For more information or an initial consultation, contact us.

References

https://www.cpomagazine.com/cyber-security/lloyds-of-london-cyber-insurance-will-not-cover-cyber-attacks-attributable-to-nation-states/

https://www.businessinsurance.com/article/20210304/NEWS06/912340248/Cyber-insurance-rates-to-increase-20-50-this-year-Aon