Providing insurers with data resiliency insights can help reduce ransomware cyberinsurance rates
The latest high-profile ransomware attacks are generating interest in cyber insurance to cover these incidents. Organizations are looking to demonstrate that they have systems that provide data resiliency to reduce these costs.
Panzura has recently seen increased demand from companies seeking to better understand their cyber insurance options, according to Glen Shok, vice president of strategic alliances. The company provides secure global file system solutions for the management, access and storage of unstructured data in large organizations.
Before sitting down with insurers to review their security practices and coverage options, Shok advises these organizations to prepare a comprehensive risk assessment. “Insurers want both preventive and recovery controls, including an analysis of the value and nature of the data being insured. This has the potential to reduce risk for the business and the insurer, and lead to lower premiums, ”said Shok.
He suggests that they talk to their technology partners and software vendors to get a Ransomware Resilience Statement (SoRR). This is an example of the type of documentation insurers can consider when companies attempt to negotiate direct premiums and stand-alone policies. Panzura offers these statements to customers and works with them when they request other information for insurance purposes.
Cyber insurance prices are driven by the need for risk management and the growing incidence of network intrusions, data theft and ransomware exploits. Fitch Ratings reports that direct cyber insurance premiums increases by more than 22% in 2020 to reach approximately $ 2.7 billion.
Shok said insurers have responded to the ransomware crisis in a variety of ways, including limiting claims payments and tying payments to policyholders’ actions. Some insurers assess whether the data has been sufficiently backed up to resume operations within a reasonable period of time, without payment of a ransom.
“Insurance policies may contain requirements to proactively protect networks and data against infection by deploying prevention, protection and recovery solutions. We want our clients to understand the benefits of providing the right information to insurers as they seek better terms or modulate rate increases, ”Shok noted.
The hard market prices are used by insurers to compensate claims, as well as stricter general conditions and stricter risk selection. Brokers are trying to get more and better information from their clients to underwriters, in order to get better terms.
Panzura’s CloudFS is a global file system that is inherently resilient to ransomware and other malware threats through data immutability. Organizations that use CloudFS to manage, store, and access their unstructured data are less likely to have to pay a ransom to regain access to data held in the Panzura file system, even if it is under attack. Data stored by CloudFS cannot be encrypted because the system maintains an unalterable and clean dataset.
Over 80% of all data in large organizations is unstructured. It is more difficult to store, analyze and access than other types of data. This includes sensitive and highly regulated medical and financial data, as well as petabyte-sized business files.