Robinson said the frequency of ransomware cases has declined over the past six months, and that actor groups were often smaller and less experienced than those who launched similar attacks 12-18 months earlier. Claim frequency has also decreased since the start of 2022, which he believes is partly due to “an increased sense of awareness through news channels”. [about] the federal government’s attention to these types of attacks.” Another reason is the widespread use of deterrents such as multifactor authentication and endpoint detection, which are some of the measures required for companies to insure cybersecurity.
Although cyberattacks are likely to continue as long as they are “anonymous and lucrative,” Robinson found that the targets and ransom demands are relatively low. Robinson said the rapidly changing characteristics of cyber threats mean that customers will need dynamic coverage, which keeps up with changes in underwriting criteria.
Amid emerging threats, brokers can support their clients by working with insurers such as RPS, which have underwriting experts who help clients plan, review cyber applications (including ransomware supplements) and address any deficiencies in their insurance coverage. can help remove it. He added that partnerships with specialist insurers can create more value for customers. Another way to help is by improving customers’ knowledge of systemic risk and critical vulnerability exclusions.
Robinson’s advice for brokers? “Discuss with your clients and plan for this type of treatment [threats],” They said. “[They] Generally investing in both money and staff is going to involve a commitment of resources… [but] They really need to be changed … it is in the interest of the client to prevent these claims from happening in the future.”
Regarding the trend of flattening rates and the potential for a softening in the market, Robinson sees current pricing and underwriting practices as an indicator of “an ongoing needed improvement in the market”. [and] A mature product,” which will be reflected in the rate hike in the recent renewal cycle.
Watch full interview here