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Ransomware insurance is becoming more common

Ransomware
(Image credit: Image source: Shutterstock/Nicescene)

Ransomware insurance is becoming more commonplace in the UK as a means of protecting against the financial impact of an attack, but concerns have been raised in some quarters.

As per a BBC report, the Association of British Insurers (ABI) has defended the concept, highlighting the value in being able to cover the costs of the ransom payment.

However, there are multiple problems with this approach, experts have claimed:

  • It could mean businesses won't do enough to protect their data in the first place
  • It could fund organized crime

The idea that this approach could fund organized crime was brought up by Professor Ciaran Martin, former head of the National Cyber Security Centre, who argued that the UK needs to rethink its policies on ransomware (opens in new tab).

"I have some sympathy with insurers, because as long as it's legal, there are incentives to pay,“ he said. "It's worth a serious piece of consultation because if we continue as we are, things will get worse," he said.

Martin added that this doesn't mean that paying the ransom should be banned, as that would probably not solve the problem either.

Commenting on the issue, a spokesperson for the ABI said insurers do require businesses to take "reasonable precautions”, to make sure they aren’t an easy target.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.