March R.S. sees 275% increase in cybersecurity-related claims
25 November 2021 Category: Banca March
March Risk Solutions (March R.S.), a wholly-owned subsidiary of Banca March and the leading Spanish-owned insurance broker, has identified a significant rise in cyberattacks on its customers over the last year, with a 275% increase in cybersecurity-related claims.
- Over the past year, March R.S. has seen ransomware attacks quadruple and phishing incidents rise by 150%, which has made these attacks one of the most pressing concerns among Spanish companies.
- Half of these are global attacks, either because they affect the insured company's systems outside Spain or because they target the company's network of international customers and suppliers.
- In light of this increase, March R.S. recommends undertaking constant surveillance of security systems alongside protocol integration. The insurance provider also advises against cryptocurrency ransom payments.
March Risk Solutions (March R.S.), a wholly-owned subsidiary of Banca March and the leading Spanish-owned insurance broker, has identified a significant rise in cyberattacks on its customers over the last year, with a 275% increase in cybersecurity-related claims. Experts at March R.S. say this upward trend in cyberattacks is due to increasing corporate digitalisation as a result of the pandemic.
According to various international reports, Spain has one of the highest rates of cyberattacks. Since it was set up in February 2020, Spain's National Cybersecurity Institute (INCIBE) has processed over 47,000 consultations through its public information service.
March R.S. has seen ransomware attacks on its customers quadruple and phishing incidents rise by 150%, which has made these attacks one of the most pressing concerns among Spanish companies. The insurance broker has observed a material increase in risk perception, both for its customers' businesses and their reputations.
Another key factor is the prevalence of global attacks, which either affect the insured company's systems outside Spain or one of its international subsidiaries, or target the company's network of international customers and suppliers. Given that European legislation does not provide standardised, homogenous regulations and that some countries worldwide do not even have cursory protective regulations in place, international attacks pose an additional challenge for organisations, as they are unaware of the technical and legal requirements in place in any given country.
March R.S. has also flagged the significant number of repeat attacks against its customers by the same hackers, which underscores their vulnerability and highlights the need for improved forecasting and protection through constant system surveillance. The integration of updated, specifically-tailored protocols allows for more effective, efficient resolution of claims, not only from a financial perspective but also in terms of reducing processing times.
A final point worth highlighting is that ransom payments using cryptocurrencies have increased substantially over the last year, and statistics show that they will continue to rise. March R.S. strongly advises against making ransom payments using cryptocurrencies, as the coverage offered by cyber-insurance policies is sometimes limited to reimbursement, and the company in question could even unwittingly commit money laundering offences.
José María Elguero, Director of Financial Risk at March R.S. emphasised the importance of reviewing insurance policy coverage, as “taking into account deductibles and cases where mandatory co-insurance is required for the insured company, the value of the coverage can be significantly reduced,” going on to warn of major increases in premiums upon policy renewals.
Antonio Santos, Head of Claims, Financial Risk, added that the financial and reputational risk posed by cyberattacks to companies demand highly sophisticated protection mechanisms, explaining that: “At March R.S., we have the technical and legal expertise required to tackle both domestic and international cyberattacks.”.