Banning insurers from reimbursing ransoms paid by clients to hackers is pointless. It is not the solution to undermine the revenue model of hackers and cybercriminals. Companies and organizations that are the target of a ransomware attack then look for other ways to pay, simply because they see no other way out.
This is apparent from research by lawyer Nynke Brouwer. She obtained her doctorate last Thursday on the functioning of cyber insurance.
Cabinet wants to prohibit reimbursement of ransom payments by insurers
Companies that have been hit by ransomware or ransomware are often at a loss. They often lose access to their systems, let alone confidential information and other data stored on their servers. The attacker offers his victims to remove the lock for a fee. If the victims do not agree, the perpetrators threaten to make the stolen information public or sell it to the highest bidder. Fearing data loss, business shutdown, reputational damage, liability, recovery costs or in the worst case bankruptcy, companies often choose to pay the ransom.
Insurers have been offering cyber
Read the article