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

Bicycle Lanes Have a Calming Effect on Traffic – Study

A research study by Bloustein School researchers and faculty members Hannah Younes, Clinton Andrews, Robert Noland, Wenwen Zhang, and Leigh Ann Von Hagen, and others, was featured in Discerning Cyclist. The study, The Traffic Calming Effect of Delineated Bicycle...

MHA program earns CAHME Reaccreditation

The Bloustein School’s Master of Health Administration program has been awarded reaccreditation by the Commission on Accreditation of Healthcare Management Education (CAHME). “CAHME's mission is to advance the quality of healthcare management education globally....

Courtney Culler Wins Excellence in Student Support Award

Each year, the School of Graduate Studies recognizes the notable achievements of graduate students, faculty, and staff at our annual awards ceremony. These awards recognize important accomplishments in research and scholarship, teaching and mentoring, leadership,...

Rutgers Today Spotlight: Lisa Harrison-Gulla

From Rutgers Today Public Health Career Inspired By Family Legacy and Personal Challenges Lisa Harrison-Gulla began her public health career 30 years ago helping those suffering from addiction in their treatment and recovery. Now, she’s using her experience – along...

NJSPL – Industry Employment Growth in NJ

By Will Irving Unpredictability has been one of the defining features of New Jersey’s labor market for much of the last two years. As the state’s unemployment rate climbed to among the highest in the nation, payroll employment continued to grow steadily before slowing...

Upcoming Events

Event Series Informatics

AI Through a Rutgers Lens (Microsoft) Part 3

Microsoft, 885 2nd Avenue, 34th Floor, New York, NY 10017 885 Second Avenue, 34th Floor, New York, NY, United States

Please join us as we explore the world of AI with help from Rutgers experts who wrestle with these questions daily.
Socially Cognizant Robotics: Preparing for a future in which humans and robots regularly interact and society develops new rules.

Jersey City Alumni Mixer

Zeppelin Hall Biergarten 88 Liberty View Dr, Jersey City, New Jersey

Join us for an alumni mixer in #JerseyCity on Thursday, June 6th at Zeppelin Hall Biergarten. Parking for Zeppelin Hall is FREE - more information can be found here: https://zeppelinhall.com/map/. This […]