Ransomware attack dubbed as ‘Wannacry’ which hit more than 250,000 computers across 150 countries in May this year did not cost much to cyber crime insurers when the claims ratio is taken into account.
But CFC Underwriting estimates that another attack of Wanna cry or Petya or a combination of both can cost cyber insurers something like $2.5 billion or a full year of gross premium income in the market.
What this means that another cyber attack related to ransomware or of any malware could spell a doom to many businesses which have started making profits from cyber insurance.
And with cyber coverage growing on a rapid note, insurers are increasingly seeing the segment as their next blockbuster. But regulators, on the other hand, are concerned that the industry could be taken by surprise at any moment in this year or next.
CFC Underwriting which is one of the top insurers of Europe is expecting the industry to introduce measures that reduce the unintended exposure to the risk of making payouts due to computer-related claims.
The UK based insurance company feels that unless such kind of policies exists on paper and in practice, the future of insurance in cyberspace looks dull and gloomy.
Although the industry did not see big claims with Wannacry and the recent NotPetya cyber attacks, the exposure to big claims is still looming on companies which are providing insurance to cyber threats.
In the United States, large companies offering cyber insurance have already started to adjust their business objectives from packaged to standalone policies. Thus, this will drive all the globally operated companies offering cyber insurance to the same stream.
So, enterprises which are now intending to go for an insurance in order to protect their digital assets have to be super cautious while signing the policy papers and paying premiums. Watch what you paying for and what you are getting in return. Or else all your investment will go wasted.
