Increase in ransomware and cyber attacks

The threat to organisations around the world from cybercrime has been increasing rapidly and was accelerated by the pandemic. In particular, ransomware - a form of malware that encrypts users’ information pending the payment of a ransom, usually in cryptocurrency, has become a major criminal industry. Ransomware attacks doubled during 2021 in the UK. Analysis of suspicious activity reports in the US has identified more ransom payment in the first six months of 2021 than in the entirety of 2020. This is part of a global trend. It’s safe to assume that there will be more business-critical cyber and ransomware attacks globally in 2022 than in 2021. Insurers certainly seem to think so; there has been a distinct hardening in the cyber insurance market, making it more difficult for organisations to obtain affordable comprehensive cyber cover for losses arising from ransomware attacks. We expect companies will face increased regulatory and stakeholder pressure to ensure appropriate systems and controls are in place and that pressure will grow for a crackdown on the ransom payments that are driving the ransomware industry’s profitability.

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