Insurance companies cutting cybersecurity coverage amid surge in ransomware attacks

Insurance companies are cutting the amount they coverage in cybersecurity policies amid a surge in ransomware attacks over the last year.

That attacks are increasing is well-known: A report in October found that ransomware attacks had targeted 64% of companies. Cybersecurity insurance was also part of the agenda at a summit at The White House in August.

Reuters reported that European and U.S. insurers operating on the Lloyd’s of London market have been able to charge higher premium rates to cover ransoms, repairs of hacked networks, business interruption losses and even public relations costs to mend reputation damage, but increasing charges only go so far.

In reaction to the increase in attacks, insurers are now halving the amount of cyber insurance coverage they provide.

“Insurers are changing their appetites, limits, coverage and pricing,” Caspar Stops, head of cyber at insurance company Optio Group Ltd., told Reuters.