CNA's insurance doesn't cowl all ransomware loss – business insurance
CNA Financial Corp.'s Cyber Insurance won't cover all losses from a ransomware attack that forced it to disconnect its systems in March, the insurer said in its filing with the Securities and Exchange Commission in the third quarter.
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CNA did not release an estimate of the losses related to the attack, but reportedly paid $ 40 million to hackers to regain control of its systems.
In the filing, CNA also said that due to the attack and industry trends, "there will be a higher cost to replenish the company's current insurance policy until the end of the term, as well as future cybersecurity insurance beyond the current term."
Cyber insurance rates have skyrocketed in recent months.
In a conference call with analysts to discuss CNA's third quarter results on Monday, CEO Dino Robusto said that "the transaction restrictions" that followed the ransomware attack are "now behind us."
CNA reported earnings of $ 256 million for the third quarter, an increase of 20.2% over the same period last year. The insurer's combined ratio improved slightly to 100% after 100.9% in the same period of the previous year.
The company reported $ 178 million in catastrophe losses compared to $ 160 million in 2020, including $ 114 million related to Hurricane Ida.
Net written premium for property / casualty increased 5% to $ 1.91 billion.