Health systems buffeted by labor and supply chain costs and broader economic woes have another unwieldy financial problem: the soaring costs of cyber insurance.
It may not be sexy — or the first thing you think about when cybercriminals wreak havoc on hospital infrastructure. But the sheer scope of the problem, and insurers’ reluctance to cover losses stemming from ransomware attacks, is hitting hospitals in a very real way, Moody’s Investors Services points out.
“The cost of insurance is rising and it’s coming at the worst time for health care. There’s not a lot of wiggle room,” Matthew Cahill, a Moody’s analyst.
Since 2019, there have double-digit jumps in premiums, sometimes more than doubling all at once, reports Axios.
A report from Property Casualty 360 last week indicates those insurance costs have finally begun stabilizing in the first quarter of 2023 for the industry.
But individual health systems continue to report major upticks in their premiums, said Omid Rahmani, an associate director with credit rating agency Fitch Ratings. Read more.
