How cyber insurance is shaping ransomware risk mitigation

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Ransomware costs are at an all-time high, and as AI-powered cyberattacks unfold, threats could become more prolific and expensive. Recent findings forecast the cost of cybercrime worldwide will amount to $13.8 trillion by 2028. Businesses are progressively seeking ways to limit their liability against such attacks to avoid expensive regulatory compliance penalties and other damaging ramifications. One of the most effective methods to mitigate the impact of ransomware and enhance defenses is with cyber insurance.

Cyber insurance policies help alleviate the financial and operational burden on organizations in wake of an attack; however, the insurance industry faces challenges of their own to maintain profitability amid surging claims. These setbacks lead underwriters to impose stricter policy qualifications and skyrocketing premiums on organizations. Companies are left weighing the benefits of cyber insurance in the thick of rising costs and shrinking coverage.