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Cyber Insurance Market Trends
Nick Economidis
Crum & Forster
nick.economidis@cfins.com
713-954-8114
Data Breach ---> Ransomware
• Reduced market capacity
• Lack of market confidence
• Inadequate returns on capital for
given risk
• Policy Level Changes
• Rate increases (40-50%)
• Limit reductions
• Ransomware coinsurance/sublimits
• Increased retentions
Data Breach ---> Ransomware
• Revised underwriting guidelines
• Multifactor Authentication (MFA)
• Endpoint Detection & Response (EDR)
• Data Backup Procedures
• 3-2-1
• Data Backup disconnected and
off-network
• Credentials not connected to Active
Directory
Systemic Risk Concerns
• One event – multitude of losses
• Not Petya
• Solarwinds
• Microsoft Exchange
• Inadequately controlled in existing
underwriting portfolios
• Exposures need to be moved off balance
sheet (e.g. Flood/Earthquake)
The Path Forward
• Eliminating the profit opportunity
– Keeping cyber crime under control
• Executive education and understanding
• Resolving systemic risk issues
Thank you!
Nick Economidis
nick.Economidis@cfins.com
713-954-8114

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Nick Economidis, Cyber Insurance & Incident Response Conference 2021

  • 1. Cyber Insurance Market Trends Nick Economidis Crum & Forster nick.economidis@cfins.com 713-954-8114
  • 2. Data Breach ---> Ransomware • Reduced market capacity • Lack of market confidence • Inadequate returns on capital for given risk • Policy Level Changes • Rate increases (40-50%) • Limit reductions • Ransomware coinsurance/sublimits • Increased retentions
  • 3. Data Breach ---> Ransomware • Revised underwriting guidelines • Multifactor Authentication (MFA) • Endpoint Detection & Response (EDR) • Data Backup Procedures • 3-2-1 • Data Backup disconnected and off-network • Credentials not connected to Active Directory
  • 4. Systemic Risk Concerns • One event – multitude of losses • Not Petya • Solarwinds • Microsoft Exchange • Inadequately controlled in existing underwriting portfolios • Exposures need to be moved off balance sheet (e.g. Flood/Earthquake)
  • 5. The Path Forward • Eliminating the profit opportunity – Keeping cyber crime under control • Executive education and understanding • Resolving systemic risk issues