Spotlight on Cyber Claims
2017 has seen huge growth in the volume of cyber claims handled by Hiscox, with a 50% increase on 2016 volumes.
Cyber is not just an issue for the likes of TalkTalk and Uber – it affects small businesses too. The overwhelming majority of claims we have handled in the UK have been for small and mid-sized businesses, with many for customers with 10 or fewer employees.
The single biggest cause of claim is ransomware. Ransomware is a type of malicious software which can encrypt its victim’s files, or in extreme cases disable computer systems altogether. As the name suggests, ransomware is always accompanied by a ransom, demanding money in exchange for software which will restore the victim’s IT systems to their previous state.
While the ransoms are typically for modest sums, these incidents can be hugely disruptive. At Hiscox we have a cyber response team available 24/7 to ensure that our customers get back on their feet as quickly as possible.
We expect to see this trend continue in 2018. Cyber claims volumes will continue to grow and ransomware will continue to make up a significant proportion of these claims.