GLOBALES: Companies use kidnap insurance to guard against ransomware attacks
 Inicio > Internacionales | Publicado el Viernes, 19 de Mayo del 2017
GLOBALES: Companies use kidnap insurance to guard against ransomware attacks

GLOBALES: Companies use kidnap insurance to guard against ransomware attacks

Reuters / NEW YORK/LONDON Companies without cyber insurance are dusting off policies covering kidnap, ransom and extortion in the world's political hotspots to recoup losses caused by ransomware viruses such as "WannaCry", insurers say.

Cyber insurance can be expensive to buy and is not widely used outside the United States, with one insurer previously describing the cost as $100,000 for $10 million in data breach insurance.

Some companies do not even consider it because they do not think they are targets.

The kidnap policies, known as K&R coverage, are typically used by multinational companies looking to protect their staff in areas where violence related to oil and mining operations is common, such as parts of Africa and Latin America. Companies could also tap them to cover losses following the WannaCry attack, which used malicious software, known as ransomware, to lock up more than 200,000 computers in more than 150 countries, and demand payments to free them up. Pay-outs on K&R for ransomware attacks may be lower and the policies less suitable than those offered by traditional cyber insurance, insurers say.

"There will be some creative forensic lawyers who will be looking at policies," said Patrick Gage, chief underwriting officer at CNA Hardy, a specialist commercial insurer, in London.

He added, however, that given that K&R policies are geared towards a threat to lives, "our absolute preference is that people buy specific cover, rather than relying on insurance coverage that is not specific".

American International Group Inc ( AIG.N ), Hiscox Ltd ( HSX.L ) and the Travelers Companies Inc ( TRV.N ) have been receiving ransomware claims from some customers with K&R policies as ransomware attacks become more common, the companies said.

The insurers declined to comment on total claims, citing confidentiality and client security concerns.

"We are seeing claims (over the past 18 months) but not a huge uptick," a Hiscox spokeswoman said. "These are within expectations and entirely manageable."

She declined to say whether the firm had seen any such claims from the WannaCry attacks though Tom Harvey, an expert in cyber risk management at catastrophe modeling firm RMS, said "insurers with kidnap and ransom books will want to look closely at their policy wordings to see whether they are exposed."

A sharp rise in ransomware attacks in the past 18 months has driven companies to use K&R policies to cover some of their damages if they do not have direct cyber coverage or cannot meet initial cyber policy deductible costs, insurers said.

Symantec Corp, ( SYMC.O ), a cyber security firm based in Mountain View in California, observed over 460,000 ransomware attempts in 2016, up 36 percent from 2015, the company said. The average payment demand ballooned from $294 to $1,077, a 266 percent increase. But as the threat mounts, K&R insurers are at risk from steeper claims than they had anticipated. They are responding by making changes to their policies, which were not designed around ransomware, insurance brokers said. MORE DAMAGING THEN KIDNAPPING Most of the computers affected by WannaCry were outside the United States, where companies have been slow to buy cyber insurance. Nearly 90 percent of the world's annual cyber insurance premium of $2.5-3 billion comes from the U.S. market, according to insurance broker Aon Plc ( AON.N ).

Global companies typically buy K&R policies without ransomware in mind. But instances of high-tech hacks and online ransom demands can hit a company?s business more than an executive being held hostage.

"If your CFO (chief financial officer) gets kidnapped, the company is going to continue to function," said Bob Parisi, cyber product leader for insurance broker Marsh & McLennan Companies Inc. ( MMC.N )

"If you get a get a piece of malware in the system, you might have two factories that stop working. The actual damage is probably greater."

The K&R policies, which typically do not have deductibles, cover the ransom payments as well as crisis response services, including getting in touch with criminal and regulatory authorities, said Kevin Kalinich, global head of Aon's cyber risk practice.

Still, K&R policies may provide only a quick fix since they were not designed for ransomware. Companies can add coverage for business interruption, but the upper limits for pay-outs are usually lower than for a cyber policy, insurers say.

K&R insurers have been adapting to ransomware-related claims - some are modernizing coverage by setting up Bitcoin accounts for clients to speed up ransom payments, brokers said.

But insurers are mindful of their own risks.

Some have added deductibles, said Anthony Dagostino, head of global cyber risk at Willis Towers Watson PLC ( WLTW.O ) advisory and brokerage.

AIG has reduced business interruption coverage available for K&R policies to a $1 million maximum, from much higher and more flexible limits, said Tracie Grella, global head of cyber risk insurance at AIG.

"Insurers didn't anticipate there would be this much ransomware activity," Grella said.

(Reporting by Suzanne Barlyn and Carolyn Cohn; Editing by Carmel Crimmins adn Timothy Heritage)

GLOBALES: Companies use kidnap insurance to guard against ransomware attacks

Con Información de Reuters

Síguenos en Twitter @entornoi

Para mas información visite:

Instagram Mi Refugio online Twitter Mi Refugio Online Facebook Mi Refugio Online Pagina Web Mi Refugio Online Pagina Web Mi Refugio Online Detener Mi Refugio Online the best way to buy or lease a car


Victor Gill <span style='display:none'>633	Alberto Ardila Olivares//</span>
 Renegociación de la deuda externa venezolana se dará en escenario de diálogo
Francisco Velasquez <span style='display:none'>293	Alberto Ignacio Ardila//</span>
 Ejercicios cardiovasculares mejoran la memoria
Francisco Velasquez <span style='display:none'>674 Francisco Velasquez PDVSA//</span>
 ¿Cómo añadir enlaces en las historias de Instagram?
Tomas Elias Gonzalez Benitez <span style='display:none'>332 Francisco Velasquez PDVSA//</span>
 Graban impactante caída de meteorito a la Tierra
Francisco Javier Velasquez Pdvsa impulsa plan extraordinario de aumento de la productividad para 2018
Gonzalo Morales Piñera y Guillier definirán presidencia de Chile en segunda vuelta
Victor Gill Ramirez Venezolanos encabezan lista de solicitudes de asilo político en España
Tomas Elias Gonzalez La Vinotinto Sub 17 cayó 2-0 ante Bolivia en los Bolivarianos
Gonzalo Morales Escándalo en Italia: Denuncian al dueño chino del Milan de ser un impostor y de inventar su fortuna
Francisco Velasquez Mugabe es destituido como líder del partido gobernante en Zimbabwe
Tomas Gonzalez Ben Affleck vuelve como Batman en "Liga de la Justicia": "El heroísmo no tiene que ver con habilidades, es sobre carácter"
Francisco Velasquez México: el 90% de asesinatos y ataques a periodistas quedan impunes

Este lunes la Corte Suprema iraquí declaró inconstitucional el referendo de independencia organizado en septiembre por el gobierno de la región autónoma de Kurdistán. El tribunal supremo "adoptó un fallo...

Los chilenos salieron este domingo a votar no solo por los 8 candidatos a la presidencia de ese país, también votaron para la renovación de la Cámara de Diputados y...

Avisa que y "no están autorizadas para prestar servicios de inversión". La Comisión Nacional del Mercado de Valores (CNMV) ha avisado hoy que y "no...

19 de noviembre de 2017.Al sector 19 de Marzo en la parroquia Caricuao, en Caracas, llegó el Plan de Abordaje Integral, con actividades recreativas, lúdicas, deportivas, culturales y servicios jurídicos,...