Violet Sullivan, CIPP/US CIPM

The recent Zywave Front Page News article titled "Ransomware Still the Top Cause of Cyber Loss, but Third-Party Risk is Close Behind: Resilience" highlights critical findings from Resilience's Midyear Cyber Risk report. Here are the key takeaways: Ransomware Dominance: - 48% of All Resilence's Claims: Ransomware continues to be the most significant source of cyber loss, accounting for nearly half of all claims. - Among ransomware-related events, 64% result in financial losses, marking a staggering 411% increase in costs associated with these attacks. - Fewer than 10% of Resilience's clients pay ransom, which may reflect a growing awareness of the risks associated with paying ransom or a stronger focus on alternative recovery methods. Third-Party Risk: - Identified as the fastest growing area of claims, indicating a significant rise in incidents where third-party vendors or partners are the source of cyber vulnerabilities. - This highlights the need for companies to not only secure their own systems but also ensure that their third-party partners adhere to strong cybersecurity practices. Industry-Specific Increases: - Manufacturing has seen a significant rise in cyber claims, jumping from 15.2% to 41.7%. This sharp increase underscores the growing threat landscape in the manufacturing sector, which may be due to its increasing reliance on connected technologies. - Similarly, Construction has experienced a dramatic increase in cyber claims, from 6.1% to 25%. This suggests that as the industry adopts more digital tools and platforms, it becomes more susceptible to cyber threats. Auditing your program can ensure you have proper coverage when an event occurs. #LocktonCyberPractice #cyberinsurance

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The recent Crowdstrike outage has brought to light critical considerations for organizations relying on cybersecurity solutions. This incident underscores the importance of understanding insurance implications in the realm of cybersecurity. Key Points to Consider: 1. Cyber Insurance Coverage: Cyber insurance policies vary widely but typically cover expenses related to data breaches, ransomware attacks, and system outages caused by cyber incidents. It's crucial for businesses to review their policies to ensure coverage includes scenarios involving third-party service providers like Crowdstrike. 2. Business Interruption Coverage: Organizations heavily reliant on Crowdstrike for endpoint security may face operational disruptions during outages. Business interruption insurance can help mitigate financial losses arising from such interruptions, covering lost revenue, additional expenses, and recovery costs. 3. Policy Review and Updates: In light of the Crowdstrike outage, businesses should proactively review their insurance policies. Ensure coverage aligns with current cybersecurity risks and consider updates or enhancements where gaps may exist. 4. Risk Management Strategies: Beyond insurance, robust risk management strategies are essential. This includes diversifying cybersecurity tools and providers, implementing contingency plans for service interruptions, and conducting regular assessments of cybersecurity posture. Amwins cyber product committee has developed the following communication for our retail trading partners & their clients regarding the CrowdStrike outage. Read the full article here: https://hubs.li/Q02HPQtG0 If you have any questions or would like to set up an in-depth policy review, please reach out to me or any of my Amwins colleagues. #CrowdStrike #CyberInsurance #HeretoHelp

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1 Comment

This is very interesting information from Chris Deacon. This is crazy! Why are taxpayer funds being spent on cybersecurity for hospitals? As she notes the budgets for these facilities have budgeted for "Revenue Cycle Optimization" software so they can more efficiently up-code, unbundle bundled codes, and basically bill for as much as possible that might be related to whatever services may, or may not, have been done. Keep in mind that "Revenue Cycle Optimization" is the hospital industries term, the rest of us call it FRAUD. RCO sounds so much more ethical than calling it what it is. Which is more important, increasing, or "optimizing" the amount of their billings, whether valid charges or not, or protecting their patients/clients information? (rhetorical question) Or, maybe their thinking that if they launch these new "Revenue Cycle Optimization" programs they will have the revenue to address cyber security?

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Great conversation with Bryan Hurd and Paul Carroll for this webinar - hope you can register, and please do reach out with questions/comments!

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3 Comments

For all businesses with retirement plans...

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Cyber insurance offers a vital lifeline, but true resilience comes from robust defenses. Build your impregnable fortress here.

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Seek experts' advice

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This article outlines common social engineering tactics to watch for. It also offers associated prevention and response tips. #cyberrisks #cyberliabilites #workerscomp

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