Another global ransomware attack, dubbed Petya, has disrupted operations at major firms across Europe and the United States.
More than 100 companies and organizations across various industries were affected, including shipping and transport firm AP Moller-Maersk, advertising firm WPP, law firm DLA Piper, Russian steel and oil firms Evraz and Rosneft, French construction materials company Saint-Gobain, food company Mondelez, drug giant Merck & Co, and Pennsylvania healthcare systems provider Heritage Valley Health System.
Today’s Insurance Information Institute Daily, via The Wall Street Journal, reports that the attack has exposed previously unknown weaknesses in computer systems widely used in the West.
The U.S. cyber insurance market grew by 35 percent from 2015 to 2016, based on recent reports.
From A.M. Best: U.S. property/casualty insurers wrote $1.35 billion in direct written premium for cyber insurance in 2016.
Overall, cyber insurance for the majority of companies was profitable and the direct loss ratio decreased by 4.5 percentage points to 46.9 percent in 2016, from 51.4 percent in 2015.
Ransomware attacks are part of the reason for the decline in the loss ratio, A.M. Best explains:
“The decline in direct loss ratio for 2016 is partially attributed to the majority of reported cyber-attacks being related to ransomware heists. In almost all ransomware cases, the losses were well below the deductible and a simple backup recovery resolved and remedied any negative long-term effect of the attacks.”
Read our earlier post on insurance for ransomware attacks.