We chat Ransomware – Cyber risk expands with Santho Mahopeloa, Senior Cyber Risk Underwriter at Allianz Global Corporate & Specialty. Santho takes us through the local trends regarding ransomware and what lessons they have learnt from their global experience.
Highlighted questions covered:
- What is Ransomware and what makes it difficult to track?
- Are there any local trends with regards to Ransomware in South Africa?
- Are there any lessons you have learnt from your global experience at Allianz?
- When it comes to ransomware, what is the actual insured risk and when you underwrite what is that quantifiable potential loss?
Highlighted take away points:
- The use of cryptocurrencies has made it difficult to track criminals and cyber culprits, it gives them great anonymity.
- It’s a costly affair to track cyber criminals.
- Due to South Africa and Africa being an immature market with immature legislations, Cyber criminals see it as a soft target.
- We are seeing trends of double extortion incidents (encryption of the system and the data), triple extortion incidents ( denial of service attack, encryption of the data and encryption of the systems) and then the extortion of your clients and your service providers.
- More than 50% of the actual claims are driven by or spiked by the restoration and BI elements.
- On average, the ransomware amount demanded that we are seeing is 5.3 million US dollars.
- 80% of risk that come across our desks are uninsurable
- Due to the technical nature of cyber, it has been a challenge across the market to educate your brokers in respect of such a new and highly technical product.