A recent report from Aon PLC stated that cyber insurance policy rates are expected to increase by 20 to 50% in 2021. This increase in rates has long been expected due to the increase in claim frequency and severity, owing largely to 486% spike in ransomware incidents from Q1 2018 to Q4 2020.
In addition to the growing threat of ransomware, we can expect the risk profile of organizations to increase as COVID-19 and related regulations require an increase in remote work. Information technology systems that were previously contained to local networks with tight controls and limited external access have shifted to accommodate remote work, meaning reliance on many decentralized networks. The all-important task of restricting access to only authorized personnel has become much more complex, opening new pathways through which cybercriminals can maneuver.
We can expect cyber insurance policy rates to remain high for organizations that do not reduce their risk profiles through the adoption of policies, procedures, and best practices. Priorities for 2021 should include developing and adopting a strong cybersecurity strategy, including a data breach protocol, password control policy, incidence response plan, website security, multi-factor authentication, and much more. This is a significant task and should be undertaken with the guidance of IT professionals.