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Firms want insurance companies to coverup cyber attacks loses

Firms falling victim of cyber attacks do no longer find it easier in case of ransomware attacks.

These ransom demands are on the increase as hackers need payment to be made by  to cryptocurrencies which turns in high value.

A report by Radware, a  Global Application and Network Security 2016-2017 indicates that reported ransom attacks rapidly gone up in the previous year, a 40% increase from 2016 survey. One out of two companies surveyed suffered financially in terms of cyber attack in the past year.

Firms are not comfortable, as cyber-attacks and regulatory fines threaten profits. These made them to run to insurance companies to cover their mounting losses. Many firms feel like they’re under siege as the tools at the hackers’ disposal seem to be getting more, not less, powerful.

An increased in usage of cryptocurrencies and their subsequent rise in price has presented hackers with a clear upside that goes beyond cryptocurrencies’ anonymity,” says Andrew Foxcroft, regional director for Radware UK, Ireland and Nordics. “Paying a hacker in these situations not only incentivizes further attacks, but it provides criminals with the vital funds they need to continue their operations.”

Insurance brokers hoping to differentiate themselves in the marketplace should look to cybersecurity as a great opportunity.

The Allianz Risk Barometer 2018 report reveals that cyber incidents remain a top threat with 38% of responses for the third year in a row for South African businesses. Business interruption (BI) second at 34%, and changes in legislation & regulation is in third place at 29%/ number 5 in 2017. These are the key findings of the seventh Allianz Risk Barometer, which was published on 16 January 2018 by Allianz Global Corporate & Specialty (AGCS). The 2018 report is based on the insight of a record 1,911 risk experts from 80 countries.

The report unveils two new South African business threats that have emerged as part of the top 10 list, which is climate change/ increasing the volatility of weather and loss of reputation or brand value, both at 16% both at #8. These new threats are not surprising, especially given the extreme weather patterns that have resulted in frequent droughts and floods affecting the country.

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