As healthcare cyberattacks soar, the cost of cyberinsurance is also rising

March 6, 2023

Healthcare systems rocked by labor and supply chain costs and broader economic difficulties have another difficult financial problem to manage: soaring cyber insurance costs.

Why is it important: That might not be sexy — or the first thing you think of when cybercriminals wreak havoc on hospital infrastructure. But the scale of the problem and the reluctance of insurers to cover losses from ransomware attacks are hitting hospitals in very real ways, Moody’s Investors Services points out.

…..

Enlarge: Insurers have placed increased demands on healthcare systems to strengthen their defenses to secure coverage, such as strong data backup strategies, use of tools such as multi-factor authentication, employee training on network security and segmentation.

  • They also create more complementary policies, experts tell Axios.
  • “Social engineering attacks, such as phishing, remain one of the most effective ways to breach a hospital system. Labor remains the weakest link,” said Soumitra Bhuyan, associate professor at Rutgers University which studied cyber insurance trends in healthcare. “So many insurers treat social engineering as a separate policy extension.
  • They also added major restrictions to coverage, including refusing to cover nation-state-backed cyberattacks.
  • By the end of this month, global insurance and reinsurance market Lloyd’s of London will require all insurance groups to exclude state-sponsored cyberattacks from their policies.
  • “With the increased rates and limited coverage, small independent and rural hospitals are at a significant disadvantage in obtaining cybersecurity insurance,” Bhuyan said.
  • “The gap between those who have adequate resources to protect their information systems continues to grow,” Bhuyan said. “Many of these hospitals are critical access hospitals or hospitals in rural areas. They do not have enough resources to secure their IT systems and may be unable to recover in the event of a breach.”

Latest Finance News, 3/3/23

Recent Posts

NJSPL: Some College, No Credential Population in NJ

Overview of the Some College, No Credential Population and Educational Outcomes in New Jersey, 2023–2024 New Jersey State Policy Lab Supporting New Jersey residents in returning to college after leaving without a credential has been an increasing focus of the state’s...

Loh and Noland Explore Public Charging Station Disparities

Equal charging for all: Are there income-based disparities in public charging stations? Abstract We compare charging station accessibility for different income groups in the San Francisco Bay Area. Using a microsimulation model, we estimate charging station...

Heldrich Center Releases New Work Trends Brief and Website

The Heldrich Center for Workforce Development is pleased to announce the availability of two new research products resulting from its long-running public opinion polling series, Work Trends. To better understand the public’s attitudes about work, employers, and the...

NJSPL Report: Analyzing the Use and Equity of ARPA Funds

Report Release: Analyzing the Use and Equity of ARPA Funds in NJ Local Governments and Beyond New Jersey State Policy Lab The American Rescue Plan Act’s Coronavirus State and Local Fiscal Recovery Funds (ARPA-SLFRF) represent a historic $350 billion investment to...

Dr. Grafova Presented Posters from the VSR Research

Dr. Irina Grafova recently returned from the AcademyHealth Research Meeting in Minneapolis, where she had the opportunity to present two posters from the Virtual Schwartz Rounds emotional support program for nurses, run by the New Jersey Nursing Emotional Well-being...