Escalating cases of malware extortion
In the face of a significant surge in ransomware attacks, major German insurance companies, including AXA and Ergo, are continuing to insure ransom payments in their cyber insurance policies.
According to Christian Gründl, Ergo's board member for commercial and industrial business, the insurer currently covers ransomware costs in its policies. AXA Insurance, on the other hand, has also stated its intention to continue insuring ransom payments in Germany. This stance is a departure from France, where AXA has decided to stop insuring such payments.
The rise in ransomware attacks has been reported by German industrial insurers, with larger companies being the most common targets. Attackers often seek lucrative targets, making the insurance of ransom payments a contentious issue in Germany. However, it is legally permissible.
Paying the ransom, Gründl said, can often minimize any subsequent costs. After paying the ransom, systems are usually restored and recovered quickly, he added.
Major German insurance companies that currently cover ransomware payments in their cyber insurance policies include Telefónica Insurance with its O2 Onlineschutz Plus package. This package offers coverage against financial damages from cyberattacks, including ransom payments up to certain limits. However, detailed lists naming the largest insurers explicitly covering ransomware payments in Germany are not widely available.
Recently, AXA and Ergo have not disclosed any specific details about the email they received regarding ransomware attacks. No change in AXA's stance on insuring ransom payments is currently planned for the German market.
Insuring ransom payments is a controversial topic in Germany, but it is legally permissible. Despite the controversy, these companies are usually well insured, according to AXA Insurance.
As ransomware attacks continue to pose a significant threat to businesses, the role of insurance companies in mitigating the financial impact of these attacks becomes increasingly important. The decision by AXA and Ergo to continue insuring ransom payments in Germany underscores the importance of this role.
