Ride the Lightning

Cybersecurity and Future of Law Practice Blog
by Sharon D. Nelson Esq., President of Sensei Enterprises, Inc.

66% of Organizations Hit by Ransomware – Average Ransomware Payment Exceeds $800,000

June 16, 2022

SC Media reported on June 13 that it is getting harder and more expensive to obtain cyberinsurance, which probably doesn’t come as news to anyone.

The challenges are evident in a recent Sophos report: “Cyber Insurance 2022: Reality from the InfoSec Frontline.” The report gathered information from a survey of 5,600 IT professionals. Among the findings:

Over the last year, companies have been dealing with the following:

  • A 57% increase in the volume of attack
  • A 59% increase in the complexity of attacks
  • A 53% increase in the impact of attacks

When it comes to ransomware, things are getting worse. When asked if they’d been hit by ransomware in the last year, 66% of respondents said yes – up from 37% when Sophos asked the same question last year. The average ransomware payment is now more than $800,000. Last year it was around $170,000.

When it comes to trying to get cyber insurance in 2022:

  • 54% said the level of cybersecurity they need to qualify is now higher
  • 47% said policies are now more complex
  • 40% said fewer companies offer cyber insurance
  • 37% said the process takes longer
  • 34% said it is more expensive

One silver lining:  Almost all those surveyed have made changes to their cybersecurity in order to obtain insurance. Of those who made changes:

  • 64% have implemented new technologies and services
  • 56% have increased staff training and education activities
  • 52% have changed processes and behaviors

For more detail, download the full report.

It’s a zoo out there – cyberinsurance comes with disquieting disclaimers, many more demands for specific steps to be taken (some of them quite expensive) and premiums are soaring. We changed our insurance and found we could get more coverage at roughly half the price. The lesson we learned is that you need to be darn sure you have a good insurance broker!

Sharon D. Nelson, Esq., President, Sensei Enterprises, Inc.
3975 University Drive, Suite 225, Fairfax, VA 22030
Email:   Phone: 703-359-0700
Digital Forensics/Cybersecurity/Information Technology
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