Kevin Ryan, Senior Insurance Analyst at Bloomberg Intelligence, commented: “United Healthcare's Change Healthcare medical billing processor, which links one third of Americans to health-insurance payments, suffered a cyber-attack in February, crippling the payments systems of a significant number of hospitals. The May attack on Ticketmaster compromising 560 million customer records is a further example of the unrelenting cyber-crime challenge.
“An estimated $8 trillion was lost globally to cybercrime in 2023, according to technology consultants Cyber Security Ventures, a significant increase vs. the $600 billion McAfee estimated in 2018. It's clear the seriousness of attacks is increasing. As such, Allianz has said that cyber risk is the No. 1 concern globally, along with business interruption.”
Following more than 317 million ransomware attacks globally in 2023 (2022: 493 million, 2021: 623 million), consultant Sonicwall monitored a 36% decline year-over-year globally, a one third fall in the US and Europe but an 11% rise in global malware attacks. The declines reflect both slowing economic activity and wins against ransomware perpetrators, according to BI.
Though insurers saw strong rises in cyber-insurance premium rates in 2022, these are now slowing, with Beazley's 2023 cyber rates falling 5% following a 40% rise in 2022, notes BI. In mature markets, such as the US and Europe, cyber insurance may be one of the few areas of insurance to record real growth.
Kevin Ryan added: “Insurers have the infrastructure to work collaboratively with clients and provide services before and after malware incidents, thus minimizing potentially negative outcomes. Cyber threats and infiltration techniques are moving to more sustained levels - known as "advanced persistent threats" - away from quick, one-off acts.”
BI Report Cyber Insurer Market Demand May Rise as New Threats Emerge
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