Bloomberg Law
Oct. 26, 2021, 5:28 PMUpdated: Oct. 26, 2021, 8:43 PM

U.S. Cyber Insurance Costs Surge as Ransomware Drives Claims (1)

Andrea Vittorio
Andrea Vittorio
Reporter

The cost of cyber insurance in the U.S. has surged as ransomware payments drive up claims, according to a report from broker Marsh McLennan.

Pricing for U.S. cyber policies for the third quarter of 2021 saw a 96% increase compared to the same quarter last year, the report found. It was the largest year-over-year increase Marsh has seen since 2015.

The frequency and severity of ransomware claims was the leading factor, the report said, as payments to unlock hacked systems often exceeded $1 million, with additional claims payments for interrupted business or exfiltrated data.

Insurance underwriters have ramped up ...

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