Ransomware uptick driving cyber price increases: Fitch

The cyber insurance world is a rapidly changing landscape but Gerry Glombicki (pictured), senior director at Fitch Ratings, is adept at keeping abreast of the constant twists and turns in this world.

Speaking to Monte Carlo Today, he provided an overview of the soaring frequency of ransomware attacks, price increases and the future of the industry.

The short answer of why ransomware is proliferating, according to Glombicki, is that it’s a profitable enterprise for the ransomware actors.

A slightly more in-depth answer is that while ransomware attacks are profitable, and certainly some actors are seeking profit, some people’s motivations are simply to cause harm or disruption.

With increased attacks comes increased demand for cyber cover. However, rising numbers of attacks are not the only factors at play.

“Boards of directors are being held more accountable for this risk,” said Glombicki, adding that this is driving more board-level discussions.

Demand for coverage alone isn’t necessarily driving price increases, although it certainly puts pressure on the capacity, he added.

According to Glombicki, the combination of an increase in ransomware attacks, more frequent cyber events and an increase in the paying out of claims are driving an increase in pricing.