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Industry Roundup: July 2, 2021

​HOW DIGITAL INSURANCE​​ TOOLS AFFECT GENERATIONAL BRAND LOYALTYThe use of digital tools in the insurance industry lags behind similar fields. Although more people are digitally managing their insurance policies, there's still room for improvement, particularly among younger generations. While nearly 60% of 18- to 39-year-olds use mobile apps for banking, less than one-third use these apps to manage their insurance.VOLKSWAGEN HIT BY DATA BREACH - O​​VER 3.3 MILLION US AND CANADA CUSTOMERS' DATA EXPOSEDVolkswagen has warned customers that one of its vendors was recently affected by a data breach which potentially exposed the information of some 3.3 million customers in the US and Canada.Customer data…

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THE NYDFS ISSUES NEW GUIDANCE ON RANSOMWARE ATTACKS

​​A guest post by Walter Contreras of Motiva​​As the Department of Financial Services noted in the Cyber Insurance Risk Framework in February 2021, the cost of ransomware attacks has also shaken up the cyber insurance market.  Because of ransomware, loss ratios on cyber insurance increased from an average of 42% during 2015-2019 to 73% in 2020. Cybercriminals keep demanding larger sums – ransom demands increased 171% from 2019 to 2020 and continue to grow. A major insurer, CNA, recently paid a $40 million ransom.  These extortion payments have funded more frequent and more sophisticated ransomware attacks. Due to the rise of ransomware the Department of Financial Services has issued guidelines…

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DFS Issues New Guidance on Ransomware Threat

​Warning of the danger of ransomware attacks, the New York State Department of Financial Services (DFS) has instructed the companies it regulates to put controls in place. DFS regulates the insurance industry, including agents and brokers, in New York.In a June 30 letter, the department said ransomware attacks are increasing. DFS-regulated companies reported an average of one ransomware attack a week between January 2020 and May 2021. Although the federal government and DFS discourage paying ransoms, 17 companies did so. The attacks are driving up costs, impacting cyber insurance premiums and coverage scope.According to the letter, ransomware attacks follow a consistent pattern. Hackers enter a…

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