The Association of British Insurers (ABI) has been accused of funding organized crime by including ransomware payments in first-party cyber insurance policies.
The ABI stated that insurance wasn’t an alternative as they were trying everything possible to minimize the risk and mitigate the damage. Without it, the firms would have faced financial ruin.
Hence, Oxford University’s Prof. Ciaran Martin declared that it was vital to rethink the UK policies on ransomware.
Indeed, ransomware is one of the most damaging forms of malware for corporate networks. If ransomware is executed on a vulnerable system, it will be able to encrypt resources, files, and backups, before locking users out. Afterward, a blackmail payment is demanded against a decryption key, usually in cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH).
Any business that doesn’t have viable backups will be then under extreme pressure to pay the ransom.
Yet, it is not illegal to do so in the UK, and having cyber insurance policies covering ransomware is key.
The ABI also stated firms must prove that reasonable security precautions must have been taken previously for claims to be processed.
However, it is predicted that ransomware attacks will continue, if not increase, and will then force insurers to re-examine their cyber insurance policies and coverage in the year.