Ransomware – Cyber risk expands

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. 

Watch the interview with Santho below:

Ransomware – Cyber risk expands from COVER Publications on Vimeo.

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