Page 197 - Cyber Defense eMagazine Annual RSA Edition for 2024

Efficacy-Based Underwriting: A Must-Have

in The Face of Cybercrime

James Gerber, Chief Financial Officer at SimSpace, discusses why efficacy-based cyber
insurance underwriting offers a useful alternative to current, and failing, underwriting models.

By James Gerber, CFO at SimSpace

The world is witnessing a watershed moment in cybercrime, reflected in a 15% increase in ransomware
attacks between 2022 and 2023 – and now including dual ransomware, for those who are counting. Over
the last five years, organizations have continued to spend more and more on cyber defense tools and
yet, only 25% of organizations report that they are ‘extremely confident’ in their team’s ability to respond
to a ransomware event. This paints a worrying picture about the future of cybersecurity and our ability to
insure its risks.

Last year, 60,000 emails from U.S. State Department accounts were stolen after Chinese hackers
breached Microsoft’s cloud-based Exchange email platform. Clorox lost their ability to provide products

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