My good friend Judy Greenwald at BusinessInsurance.com reported that Aon PLC stated that “Policyholders can expect 20% to 50% rate increases for cyber coverage throughout 2021 as trends that began last year continue at an accelerated pace,…” The March 4, 2021 report entitled “Cyber insurance rates to increase 20-50% this year: Aon” included these comments from Aon:
To maintain a commitment to long-term stable cyber capacity, insurers are reviewing areas in their portfolio where underwriting action is needed, and reevaluating capacity deployment, specifically as it relates to ransomware losses,...
….trends to watch include errors and omissions exposures stemming from many organizations' accelerated digital transformation initiatives; potential vulnerabilities from the use of Remote Desktop Protocol software; breach regulations, as the regulatory environment continues to grow in complexity; cyber extortion, with ransomware attacks evolving to include the threat of exposure of sensitive data on the public internet in addition to the encryption of sensitive data; and vendor risks, because of organization's reliance on third-party technology and back-end applications.
Everyone saw this new coming!
Originally Published by Foley & Lardner, March 2021
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