Europe insurer AXA stops reimbursing ransom payments for French ransomware victims

AXA, one of the biggest Europe insurers, denies reimbursing ransomware payments, suspending its reimbursement policy in France. Ransomware attack is a daily affair for most organizations across the world. As per Associated Press, this is a first-of-its-kind move by the famous insurer. Further, ZDNet believes that AXA is a cyber insurance market leader as per its standalone policies. axa europe frenchgreigzdnet.

The changes were applicable only to France after cybersecurity leaders of the French government and French Senators. They raised concerns regarding payments to cyber criminals during a conference in Paris.

The ransomware attacks have taken a heavy toll on French companies that have lost billions in 2020. It impacted organizations with an estimate that amounted to almost $5.5 billion of loss. insurer axa frenchsharmableepingcomputer.

Sources of The Associated Press commented that the US suffered majorly from ransomware attacks, as said by French cybercrime prosecutor Johanna Brousse.

The cyber insurance provider Coalition said that ransomware incidents showcased 41% of cyber insurance claims filed during the first half of 2020. The company has seen a 260% hike in ransomware attacks on policyholders, and the ransom demand has increased by 47%. However, the range of the claim ranges from $1000 to $2 million. france french itcimpanuzdnet.

Cybersecurity experts are of the opinion that insurance policies have given rise to ransome payouts. It had a disastrous impact on increasing ransomware incidents, leading to more attacks. Knowing there would be coverage for the companies, the attacks increased between 2020 and 2021.    

To regain system and data control, most of the attacks during 2020 impacted K-12 schools and hospitals. However, it is important for a business to get protection from ransomware and prevent getting bankrupt, as has been commented on by Cowbell Cyber CEO Jack Kudale. In this regard, senior cyber intelligence analyst Digital Shadows Xue Yin Peh commented on how cyber corruption impacts organizations.