LONDON, July 5 (Reuters) – Cyber insurance rates dropped around 10% in June compared with a year earlier, reversing recent sharp rate rises, as claims proved smaller than expected, broker Howden said in a report on Wednesday.
Cyber insurance rates more than doubled in 2021 during the COVID-19 pandemic, driven by a rise in so-called ransomware attacks, Howden said.
Ransom software works by encrypting victims’ data and typically hackers offer victims a pass code to retrieve it in return for cryptocurrency payments.
But the number of global ransomware attacks fell by 20% in 2022 from a year earlier following the start of the conflict between Russia and Ukraine, as hackers in those countries focused on the military effort, Howden said.
Insurers have also demanded their clients do more to protect themselves against attacks, lessening the risks and encouraging underwriters into the market, after a period of nervousness.
Cyber insurance rates drop 10% in June -report
