What is Ransomware?
Malicious software that encrypts victims' data and demands payment for decryption. A primary driver of cyber insurance claims.
Ransomware
Malicious software that encrypts victims' data and demands payment for decryption. A primary driver of cyber insurance claims.
How it works in practice
A ransomware group deploys malware that encrypts the systems of a hospital network, demanding $10 million in cryptocurrency to restore access. The hospital's cyber insurance policy covers the ransom payment, forensic investigation, notification costs, and business interruption during the 12 days of downtime. If the same ransomware variant hits dozens of the insurer's policyholders, the aggregate claims become an aggregation risk event.
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