CNA’s insurance won’t cover all of ransomware loss | #malware | #ransomware


CNA Financial Corp.’s cyber insurance won’t cover all its losses from a ransomware attack that forced it to disconnect its systems in March, the insurer disclosed in its third-quarter filing with the Securities and Exchange Commission.

“Although we  maintain  cybersecurity  insurance  coverage  insuring  against  costs  resulting  from  cyber attacks  (including  the  March  2021  attack),  we  do  not  expect the  amount  available  under  our  coverage  and/or  our  coverage  policy  to  cover  all  losses,” the insurer stated in the filing.

CNA did not provide an estimate of its losses related to the attack but it reportedly paid $40 million to hackers to regain control of its systems.

In the filing, CNA also said that as a result of the attack and industry trends, it “will incur  higher  costs  for  the  replenishment  of  the  Company’s  current  policy  through the end of the term, as well as future cybersecurity insurance coverage beyond the current term.”

Cyber insurance rates have skyrocketed in recent months.

On a conference call with analysts to discuss CNA’s third-quarter results on Monday, CEO Dino Robusto said “the transactional limitations” that followed the ransomware attack “are now behind us.”

CNA reported a profit of $256 million for the third quarter, a 20.2% increase over the same period last year. The insurer’s combined ratio improved slightly to 100%, compared with 100.9% for the prior-year period.

The company reported $178 million in catastrophe losses – compared with $160 million in the 2020 period – which includes $114 million related to Hurricane Ida.

Property/casualty net written premium increased 5% to $1.91 billion.

 

 

 

 



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