In 1989, the first ransomware attack surfaced through the use of floppy disks. However, it wasn’t until the 2010s when cryptocurrencies and untraceable payments became prevalent that ransomware attacks exploded. The growth of cryptocurrency and international relations have significantly influenced the ransomware landscape. There has been a rise in targeted attacks on industries with weaker cyber defenses, such as manufacturing and healthcare. Victims of ransomware faced the dilemma of paying the ransom or attempting recovery, with many organizations opting to pay due to the high costs associated with recovery and potential business impacts.

Cyber insurance has played a critical role in the ransomware landscape, with insurers modifying their requirements for cover to ensure businesses are secure and capable of responding to cyber attacks. Insurers have increasingly discouraged ransom payments and focused on improving businesses’ preventative security measures. This shift has led to more organizations implementing immutable backups and better response capabilities, resulting in fewer claims being made. Cyber insurance has proven to be more effective in improving ransomware response compared to regulatory measures.

The key to combating ransomware lies in collaborative efforts and improving cyber resilience. While paying the ransom may seem like a quick fix, it ultimately fuels more attacks. Cyber insurance has been instrumental in enhancing businesses’ ability to recover from cyber threats. It has been a significant positive factor in improving ransomware response and overall cyber resilience.