More than four in five respondents (81 percent) had a coverage limit under $600,000 – below last year’s median ransomware demand
Waterloo, ON (Aug. 10, 2022) – BlackBerry Limited and Corvus Insurance today released the BlackBerry Cyber Insurance Coverage study, showing businesses are increasingly concerned about how they will meet ransomware demands. Only 19 percent of those surveyed have ransomware coverage limits above $600,000, while over half (59 percent) hoped the government would cover damages when future attacks are linked to other nation-states.
Small-to-medium sized businesses (SMBs) – who have become a favorite criminal target – are especially feeling the heat. Of businesses with under 1,500 employees, only 14 percent have a coverage limit in excess of $600,000. A recent Forrester report estimated that a typical data breach would cost the average organization $2.4 million to investigate and recover. Perhaps unsurprisingly, 50 percent of SMB respondents hoped the government would increase financial aid in all ransomware incidents.
“Not only are there more ransomware threats than ever, but the criminals are more ruthless. They will iterate threats and wait patiently in order to extract maximum damage,” said Shishir Singh, Executive Vice President and CTO, Cybersecurity at BlackBerry. “For uninsured and underinsured organizations, this potentially puts them in extreme jeopardy. The cyber underground is increasingly sharing learnings and partnering to make threats as efficient as possible. It’s vital businesses strengthen their security posture against these threats by supplementing insurance with a prevention-first software approach that lowers their overall risk.”
Many businesses reported cybersecurity coverages that are poorly tailored to their current situation. Over one-third (37 percent) of respondents aren’t currently covered for any ransomware payment demands, while 43 percent aren’t covered for auxiliary costs such as court fees or employee downtime.
At the same time, cyberinsurance has become harder to get, due to increased software requirements placed by insurance brokers. Over one-third (34 percent) of respondents have been denied coverage due to not meeting specific Endpoint Detection and Response (EDR) software requirements. These increased requirements however may be having a real impact on reducing ransom payouts.
“Though it might sound counterintuitive, continuing to adhere to software requirements is one of the best ways to fight the ransomware industry,” said Vincent Weafer, CTO at Corvus. “In our portfolio alone, we’ve seen a 50 percent reduction in the ratio of ransom demands that end up being paid. Better software adoption is a critical element in better positioning organizations to stand up to attackers.”
For additional information on the BlackBerry Cyber Insurance Coverage study, please visit the BlackBerry blog.
BlackBerry commissioned TEAM LEWIS Research to run an online survey of 450 business decision makers for IT / security solutions in the United States and Canada. The fieldwork took place between July 15 and July 22, 2022.
BlackBerry Limited (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including 215M vehicles. Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems. BlackBerry’s vision is clear – to secure a connected future you can trust. For more information, please visit www.blackberry.com.
Corvus Insurance is building a safer world through insurance products and digital tools that reduce risk, increase transparency, and improve resilience for policyholders and program partners. Our market-leading specialty insurance products are enabled by advanced data science and include Smart Cyber Insurance®, Smart Tech E+O™, and Smart Cargo®. Our digital platforms and tools enable efficient quoting and binding and proactive risk mitigation. Corvus Insurance offers insurance products in the US, Middle East, Europe, Canada, and Australia. Current insurance program partners include AXIS Capital, Crum & Forster, Hudson Insurance Group, certain underwriters at Lloyd’s of London, R&Q Accredited, SiriusPoint, and Skyward Specialty Insurance. Corvus Insurance, Corvus London Markets, and Corvus Germany are the marketing names used to refer to Corvus Insurance Agency, LLC; Corvus Agency Limited; and Corvus Underwriting GmbH. All entities are subsidiaries of Corvus Insurance Holdings, Inc. Corvus Insurance was founded in 2017 and is headquartered in Boston, Massachusetts with offices across the US, in the UK, and Germany. For more information, visit corvusinsurance.com. For more information, please visit www.corvusinsurance.com.
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Source: BlackBerry LimitedTags: Blackberry, Corvus, cyber attacks, Cyber Insurance, cyber risk, cyber security