04/12/2022 (2) - Laserfiche WebLink

Home Browse Search

Indian River County Board of County Commissioners Where we are: What we're seeing now • The ransomware and cybersecurity risk trends we saw in 2020 continued to plague the Cyber insurance market throughout 2021. • Cyber claim frequency and severity continued spiraling upward, which led to a swift response from the Cyber insurance market. Carriers imposed significant limitations of capacity, narrowed the scope of coverage terms, heightened underwriting scrutiny and significantly increased rates. • Nearly all carriers now require attestation of at least some preventive controls, which likely include multifactor authentication, remote desktop protocol, data backup practices, segregation of networks, encryption, patch management, privileged account management, employee training and a host of others. • Rate increases were experienced across most industry sectors, with larger companies subject to greater increases and higher underwriting scrutiny. • Companies without best -in -class data security are likely to see rate increases in the 100%-200% range, and in some cases as high as 300%. Even those that comply with all underwriting required security controls are seeing increases in the excess of 75%. 1D Gallagher P**CORE360- Q4 2021 Cyber Rate Changes Gallagher — U.S. Clients 0 Decrease 0 Flat Increase 50.2% median rate change in Q4 2021* • Most Cyber insurance buyers are feeling the impact through time consuming and complex renewals, with many obtaining less coverage at a higher cost. • The median increase in Q4 2021 for Cyber companies was 50.2%, with 87% taking an increase. Where we're going: Trends we are watching • The Cyber underwriting community The top 25% of has responded to 2020 and 2021 loss companies saw data and Cyber claim trends with a laser focus on data security controls Cyber rate when evaluating risks. increases • We expect even greater underwriting scrutiny of cybersecurity controls in // of 97.110 the Cyber insurance market throughout the remainder of 2022, in Q4 2021, with capacity continuing to shrink. • Insurance products will reflect decreasing carrier appetites to fully cover ransomware costs, as they push for cost-sharing in the form of ransomware coinsurance and sublimits. • Rate hikes show no real signs of leveling off in the near term. 12