Further to the recent cyber-attack on the NHS and others, we are grateful to Adler Insurance Brokers Ltd and Equilibrium Security for the following advice.
Back in November we gave a rather chilling talk at the ARMA Conference on cyber risks and how to protect against them and unfortunately the events of the last few days serves as a reminder of the importance of such protection.
As cyber-attacks become more prevalent, it is becoming increasingly important to have the appropriate cyber insurance. If the government doesn’t have the money to support this kind of attack, what chance would a small business have?
“We are seeing a marked rise in the frequency of these relatively small but damaging ransomware claims“ said Angela Irvine, Director at Adler Insurance Brokers. “This corresponds with a steady increase in targeted extortion – with larger companies threatened for £50,000 to £100,000. Either way, large corporate or small SME, the business interruption, stress and reputational damage can often far outweigh the financial cost of the ransom itself.”
Cyber insurance is ballooning globally — the total written premium around the world is estimated at $2.5bn, and that could reach $20bn by 2025, according to Allianz. Demand will be boosted again when new EU data regulations come into force in 2018. These regulations outline how companies should react when they experience a data breach and threaten possible fines of up to €20m, or 4 per cent of the company’s annual worldwide turnover.
Insurance brokers are surprisingly beginning to play an expanded role in countering the cyber threat, using traditional expertise in risk management and claims services. They are also gaining more technical expertise in cyber threat testing and prevention and post-event resolution through with cyber security vendors, like Adlers’ association with Equilibrium. Cyber protection coverage, therefore, increasingly includes a service and advisory component, as well as insured loss limits.
With regard to the current situation, Anish Chauhan at Equilibrium Security has advised the following:
The ‘WannaCry’ ransomware attack broke on Friday May 12, it has propagated through a vulnerability in the Microsoft SMB protocol. The reason WannaCry has been so impactful is due to its ability to use the SMB vulnerability to spread throughout a network and install itself on devices beyond the initial infection point, just like a good old fashioned Worm; installing itself on other systems in the network without any user involvement.
Our Recommendations:
Despite the recent attacks our viewpoint on this hasn’t changed; security solutions cannot be looked at in isolation when it comes to protecting your organisation, you need to look at people, processes and the technical infrastructure you implement; the below are recommendations that relate directly to the ‘WannaCry’ attack:
Patch Management – apply manufacturer software updates as soon as possible
- Don’t run out of date/unsupported manufacturer systems
- Implement advanced security systems – that can undertake advanced malware analysis and incorporate Intrusion Protection Systems
- Regularly back your data up – so that if you are impacted, you have a roll back point
Also keep to date with the latest guidance from the National Cyber Security Centre.
All of our advice is based on best practice and follows our ethos as an IASME Cyber Essentials Certification body
If you would like to discuss your concerns and how we could help you then please don’t hesitate to contact us at [email protected] or telephone 0121 663 0055.
If you have any queries whatsoever about cyber insurance or the recent ransomware attacks, please get in touch with Adler Insurance Brokers either by email to [email protected] or on 0121 764 7567.
