Insurers are having to scale back the cover they provide to businesses for cyberattacks, as the industry attempts to tackle the surge in ransomware hacking.
Some insurers have halved the amount of cyber protection provided as the pandemic and rise in homeworking spur a spate of attacks.
Premium rates have reportedly risen 73% because of the frequency and increasing severity of the attacks, according to insurance broker Marsh.
Michael Shen, the head of cyber and technology at Canopius, said ransom payments can be as high as US$50mln, compared to US$600 a few years and as hackers become more advanced and commonplace.
Research by the National Cyber Security Centre found cyberattacks, in general, have risen by 7% for the year ending 31 August compared to the previous 12 months.
And whilst the insurance industry licks its wounds, the cybersecurity business will undoubtedly be licking its lips, with the boom in cases seeing a rise in firms requiring enhanced online protection.
Corero Network Security, a provider of high-performance distribution denial of service attacks, announced yesterday that it had secured several significant customer orders totalling over US$4mln.