Finance Monthly. F i nanc i a l Innov a t i on & F i nTech 49 However, as the cybercrime landscape has evolved and attacks have surged, the transference of this risk between organisations and their insurers has become something of a problem. Ransomware strains like WannaCry and NotPetya played a big role in raising awareness of how malware is evolving. As the industry looks back at these two pivotal attacks nearly six years on, it seems that they signify the ‘beginning of the end’ for affordable premiums and wide-spanning policies. While the WannaCry worm was reported to be the single biggest driver for cyber insurance enquiries in the first half of 2017, NotPetya brought insurance policies into question. In particular, Zurich Insurance managed to avoid payouts by citing its “war exclusion” clause, protecting the company from reimbursing costs related to damage from war. Labelled as a ‘watershed moment’ for the insurance industry, NotPetya catalysed the implementation of more rigid clauses and rising premiums to protect insurance companies. Since these attacks, ransomware and other forms of cybercrime have been on an exponential growth curve. Today, premiums are at an all-time high, as insurers are no longer able to comfortably quantify the risk of such a changeable and dangerous environment. In fact, reports have found that the price of cover in the UK grew by 92% in the fourth quarter of 2021 alone. For enterprises looking to ensure survival post-attack, this means an enforced implementation of better cyber hygiene in an attempt to drive down costs, which ultimately can and should be viewed as a step in the right direction. The environment for rising premiums There are a number of factors feeding into the rise in cyber insurance premiums, one of which is undoubtedly the political uncertainty in the wake of the Russian’s invasion of Ukraine in February 2022. In terms of the conflict and the impact this has on the cyber world, tensions between the two countries have been long-standing and began to heighten, particularly in cyber terms, around eight years ago. Within a string of cyber-attacks launched against Ukraine since then, it is NotPetya that has been the most devastating – labelled “Considering Russia has again launched attacks on Ukraine, organisations around the world should be on high alert.”
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