Ransomware has become a business. And that’s having an impact on companies that provide cyber insurance.
The cyber insurance industry faced “a reckoning” in 2020 in the wake of a wave of ransomware incidents, according to a report from Fitch Ratings provided to FOX Business.
The direct loss ratio, a critical statistic for the industry, spiked in 2020 to 73%, compared with an average of 42% for the previous five years (2015–2019), according to a May 2021 Fitch Ratings report.
And the average paid loss for a so-called closed standalone cyber claim jumped to $359,000 in 2020 from $145,000 in 2019, Fitch said.