lg-it Re: Ransomware Insurance Question

From: Darren Geddes <darren.geddes@xxxxxxxxxxxxxxxxxxxxxxxx>
To: "lg-it@xxxxxxxxxxxxx" <lg-it@xxxxxxxxxxxxx>
Date: Thu, 30 Jun 2022 00:15:02 +0000

I’d check the last annual report from the ACSC linked below it includes the
incidence and average cost of security incidence in general. Phishing and
associated ransomware is the most common incident.

Last year I did a piece of work that found the following.

In terms of the costs of cybersecurity breaches, there are quite different
estimates. IBM estimates the cost of an Australian data breach at $2.15 million
USD in a 2020 study although public entities experience losses of $1.08 million
USD on average as citizen’s will continue to work with the government after a
security event as there is no alternative.
The Verizon Data Breach Investigations Report 2020 found that the average loss
related to incidents was $32,200 per incident.

I recommended external parties havet $5,000,000 for Cybersecurity insurance per
incident and it should cover the following as a minimum.

Coverage
Cyber security coverage typically provides the following key first party and
third party coverages:
First Party

  *   Direct access to incident response specialists in the event of an actual
or suspected cyber breach
  *   Coverage for loss of profit due to business interruption that results
from network or system downtime
  *   Coverage for costs incurred in rectifying computer system damage and
recovering lost data
  *   Notification and monitoring costs for impacted customers
  *   Insurable fines and penalties resulting from a regulatory investigation
  *   Coverage for payment card industry (PCI) data security standards
assessments

Third Party

  *   Compensation and defence costs which arise from claims brought by
impacted customers or employees for breach of confidentiality obligations
  *   Third party privacy and breach management costs, including notification
expenses, credit monitoring costs and call centre services
Can’t provide exact figures due to commercial in confidence but it does depend
on your organisations risk appetite

https://www.cyber.gov.au/acsc/view-all-content/reports-and-statistics/acsc-annual-cyber-threat-report-2020-21

From: lg-it-bounce@xxxxxxxxxxxxx <lg-it-bounce@xxxxxxxxxxxxx> On Behalf Of
Price Nick
Sent: Thursday, 30 June 2022 9:57 AM
To: lg-it@xxxxxxxxxxxxx
Subject: lg-it Ransomware Insurance Question

[SCC External Email: Use caution with links and attachments]
Hi Everyone,

Council currently has an offer from its insurance company to increase its
ransomware insurance cover.
Does anyone have any advice about the average dollar amounts for ransomware
demands or their councils cover amounts so we can make an informed decision.

Thanks in advance

Nick Price
Information Technology Manager
PH:  (02) 6959 5533  I  Fax: (02) 6959 1884  I  Email:
nick.price@xxxxxxxxxxxxxxxxxxxxx<mailto:nick.price@xxxxxxxxxxxxxxxxxxxxx>

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References:
- lg-it Ransomware Insurance Question
  - From: Price Nick

lg-it Re: Ransomware Insurance Question

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