Insurance News Today; Cyber Threats Increasing Demands and New Techniques

Insurance News Today; Cyber Threats Increasing Demands and New Techniques

Author: SK

Wednesday, July 28, 2021

Compared to last year, the ransomware demands have been increasing threefold in the current year. Moreover, hackers are evolving in their methods, and the Texas insurance department reports new techniques by the hackers. Consumer and confidential business data require security, and possible leakages can harm a business. 

Also, many homeowners are facing an increase in their premium rates. These two news are the hottest trends for today. Let’s find out more about them in detail. 

Ransomware Demands Increase

Several cyber insurance companies and service providers like Coalition had reports which were outlining the facts regarding the increase in ransomware attacks in 2021. On average, the ransomware demands rose from $495,000 to $1.2 million in a span of one year. Unsurprisingly, these demands can take a hit on cyber insurance companies. 

Another interesting fact is that there is a slight decrease in the payout by a service provider, Coalition, which shows great efforts of companies to negotiate and secure confidential data. The Coalition also discovered plenty of new ransomware variants and that most of them are using less complex techniques to target organizations. 

While there is a rampant increase in ransom attacks, the methods are not so strong, making it easier to reverse the impact. Mostly, the hackers are targeting small businesses using techniques like phishing. 

Texas Warns Over Fake Text Scams.

As mentioned earlier, hackers are evolving in their techniques; you should look out for suspicious messages. The Texas Insurance department warns the user of fake messages from agencies. Now, hackers can make numbers that appear legitimate and trustworthy and use them to reveal confidential information. 

No matter where you are, you should look out or report to authorities. 

National Flood Insurance Program (NFIP) Insurance Hike

NFIP insurance policyholders’ premiums can rise after a new risk rating methodology system rolls out. Before this system, the flood risk calculation took in factors like property’s elevation location to floodplains. However, the metrics will increase when the new system sets out. The new basis will include flood frequencies and rebuild costs. 

According to this new system, the projections show that the majority of homeowners will face high costs. 

Endnote

Now and then, new policies come into existence quickly, which challenges insurance industry decisions. The decisions and policies change quickly. Therefore, before any policy causes an adverse effect on premiums, search for your quotes on insurance shopping before it’s too late.