Cyber Insurance Costs Rise in Health Care as Attacks Soar

Just how will that affect health care costs for employers?

By Rick Richardson
Technology This Week

Health systems – having already been hit by labor and supply chain costs and broader economic woes – have another unwieldy financial problem: the soaring costs of cyber insurance.

Moody’s Investors Service notes that, while it’s not sexy, the sheer size of cyber-crimes and insurers’ reluctance to cover losses brought on by ransomware attacks are seriously impacting hospitals.

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“The timing of the insurance price increase is bad for health care. There isn’t much room for error, ” said Matthew Cahill, a Moody’s analyst. There have been double-digit increases in premiums over the past four years, often more than tripling in a single year. According to a recent analysis from Property Casualty 360, the industry’s insurance costs have finally started to stabilize in the first quarter of 2023.

Posted on April 21, 2023

Rick Richardson

About the Author

Rick Richardson, CPA.CITP, CGMA, is the CEO and founder of Richardson Media & Technologies and editor and publisher of Technology This Week, regularly featured at CPA Trendlines under special arrangement.

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Technology This Week provides an easy to read digest of the technology that tax and accounting practitioners need to know to better serve their clients. Professionals rely on Richardson to tell them in a timely and informative manner what’s new in technology and how it will impact their business and personal lives. Subscribers also have access to the entire library of prior issues with an easy-to-use search.

With all of the news sources available today, it's next to impossible to keep up with what's new in the world of technology. Technology This Week is a 20-minute read designed for an average reader rather than the technologist. Richardson had a 28-year career in technology with Ernst & Young, the last twelve years of which he served as National Director of Technology. He has been named to the "Technology 100" – the annual honors list of the 100 key achievers in technology in America. He has also been honored by the American Institute of CPAs with two lifetime achievement awards for his contributions to the profession in the field of technology. In 2012, Rick was inducted into the Accounting Hall of Fame by CPA Practice Advisor Magazine. He has also been named to the 100 most influential individuals in the accounting profession in America by Accounting Today magazine. He is a sought-after speaker around the world, providing his annual forecast of future technology trends to thousands of business executives, professionals, community leaders, educators, and students.

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