Top 9 Industries Vulnerable to Ransomware Attacks
Some industries are more vulnerable to ransomware attacks than others, both because of inherent vulnerabilities in some industries and because hackers historically have targeted these industries more often.
Looking at it from a top-down risk perspective, the industries subject to ransomware attacks the most in 2021 according to BlackFog (in descending order) were:
This list can give a general idea of where your business or industry may fall for big-picture risk.
Ransomware is a type of malicious software (malware) designed to encrypt files on a victim’s computer or network, making them inaccessible and unusable. The attackers behind ransomware demand a ransom, typically in the form of cryptocurrency, in exchange for providing the decryption key to restore the files.
Ransomware attacks can have severe consequences for businesses, and organizations. They can result in data loss, financial losses, operational disruptions, reputational damage, and legal implications.
It is crucial to have strong cybersecurity measures in place, including regular data backups, up-to-date software, strong passwords, and security awareness training, to help prevent and mitigate the impact of ransomware attacks.
If you are looking for a reputable cybersecurity company, outsourced IT provider, or cyber insurance options, contact me and I can connect you with local trusted providers to help your business to help prevent ransomware losses from affecting your daily business operations.
Sources: “The State of Ransomware in 2021” BlackFog; Risk Placement Services, Inc
Is the Cyber Insurance Market Stabilizing?
I just wrapped up a sizable Cyber insurance policy renewal and based on the results of our marketing efforts, I think it’s a good indication that the market is beginning to stabilize.
The cyber insurance market has been in a hard market for the past several years.
This particular cyber insurance renewal is for a middle market company that works with Fortune 500 companies. They’re required to carry $50,000,000 in coverage by contract.
The insured’s services are viewed as a higher risk for the cyber market. It is a technology-based business that holds a lot of third-party sensitive data. They do about $75M – $80M in annual revenues. Cyber liability and data breach are definitely their primary risk exposures.
This policy renewal took 10 carriers to quota share the risk and the year-over-year premium is down in 2023 by 4-5%.
I had a feeling the renewal premium wouldn’t spike as hard as it did last year, but I was pleasantly surprised there was actually a slight DECREASE for this renewal.
The cyber insurance market is a lot like the mortgage industry prior to 2008.
Up until a few years ago, you could buy cyber insurance by providing very little information and carriers practically gave away quotes. And not very expensive ones relative to the risk.
Then hackers decimated the cyber insurance market with ransomware and social engineering attacks. Millions upon millions of claims dollars were being paid by carriers as a result.
Underwriting ultimately tightened and those looking to secure cyber insurance coverage must now show preventative measures are in place for their organizations such as data encryption, multi-factor authentication (MFA), data backups, etc.
Underwriters won’t even think twice about insuring a business if these types of measures are not in place.
Cyber insurance pricing and trends vary by company. However, in this particular case where we have a sizable middle market company with above-average cyber risk, a decrease in premium this year is a positive sign.
Let’s hope the cyber insurance market continues trending in this direction.
Each and every company/policyholder will see different outcomes with their cyber coverage and rates based on their own unique makeup. However, if you can show that your organization takes preventative measures to help mitigate cyber risk up front, you’re in a favorable spot.