{"id":290742,"date":"2023-09-21T15:58:35","date_gmt":"2023-09-21T20:58:35","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=290742"},"modified":"2023-09-23T21:26:23","modified_gmt":"2023-09-24T02:26:23","slug":"caesars-mgm-could-see-cyber-insurance-rates-rise","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/","title":{"rendered":"Casino Ransomware Attacks Could Stoke Higher Insurance Costs"},"content":{"rendered":"

Following a recent ransomware attack, Caesars Entertainment (NASDAQ: CZR) announced in a regulatory filing that an unidentified insurance provider will cover the costs of a payment to cyber criminals. Analysts widely expect rival MGM Resorts International (NYSE: MGM) to soon make a similar proclamation. The bad news is that it could lead to high cyber insurance costs.<\/p>\n

\"VICI
MGM’s Excalibur on the Las Vegas Strip. That operator and rival Caesars Entertainment could see cyber insurance rates increase following ransomware attacks. (Image: YouTube)<\/figcaption><\/figure>\n

Ransomware attacks — cyber infiltrations in which perpetrators make monetary demands<\/a> — have surged in frequency in recent years. That spike has been accompanied by insurance carriers raising client rates, noted Guy Carpenter LLC.<\/p>\n

After a wave of ransomware activities starting in 2019, cyber insurance companies responded swiftly with major price hikes, as evidenced by Guy Carpenter cyber client group\u2019s average 183% cumulative rate increase since 2020,\u201d<\/strong> according to the research firm.<\/p><\/blockquote>\n

One of Caesars\u2019 insurance carriers is believed to have paid the hacking group \u201cScattered Spider\u201d $15 million to $30 million. Separately, a sell-side analyst recently noted that MGM likely has a $200 million<\/a> cyber insurance policy. That could cover all or most damages associated with the ransomware attack that the operator endured. Analysts expect the casino giants to be subject to higher cyber insurance costs in both cases.<\/p>\n

Industries React to Casino Ransomware Attacks<\/h2>\n

While companies spend tens of billions of dollars annually on cybersecurity, the history of cyber attacks on corporate entities is often reactive more than proactive.<\/p>\n

\n

For example, evidence suggests that in the wake of the cyber breaches against Caesars and MGM, more gaming companies are reaching out to cybersecurity firms<\/a> to take preventative steps. Likewise, insurance carriers are proving reactive in their own way by increasing rates as ransomware attacks and payments surge.<\/p>\n<\/div>\n

\u201cRansomware activity has escalated since the start of 2023, with ransom payments spiking to near the level of fourth quarter 2021,\u201d added Guy Carpenter. \u201cThe recent headline-grabbing attacks on these Las Vegas casino resorts will again heighten the industry\u2019s attention to the ongoing threat from ransomware groups. Resulting losses for many insurers participating in the MGM and Caesars cyber towers could also lead to a more cautious approach on pricing and terms.\u201d<\/p>\n

The research firm also pointed out that while Scattered Spider hit both Caesars and MGM using the same methodology known as social engineering, the insurance industry will likely classify the breaches as two distinct events, not a single catastrophe.<\/p>\n

Predictable Response by Insurance Industry<\/h2>\n

It wouldn’t be surprising if insurers boost cyber insurance rates on Caesars, MGM, and other casino operators. As anyone at fault in an automotive accident knows, insurance companies often raise rates following a negative event.<\/p>\n

\n

There are also instances of insurance providers halting new policies following catastrophic events. For example, State Farm recently announced it will stop selling new homeowners insurance policies in California because of wildfire risk. Similar policies from various companies are increasingly pricey in hurricane-prone Florida.<\/p>\n<\/div>\n

For now, it appears unlikely that casino operators will see access to cyber insurance diminished. But the breaches at Caesars and MGM are reminders that being proactive is better than being reactive.<\/p>\n

\u201cWhile the cyber insurance industry confronts systemic risk through quantification and policy wording, insurers and insureds should view the Vegas attacks as garden-variety cybercrimes that are financially motivated,\u201d concluded Guy Morris.<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a recent ransomware attack, Caesars Entertainment (NASDAQ: CZR) announced in a regulatory filing that an unidentified insurance provider will cover the costs of a payment to cyber criminals. Analysts widely expect rival MGM Resorts International (NYSE: MGM) to soon make a similar proclamation. The bad news is that it could lead to high cyber […]<\/p>\n","protected":false},"author":46,"featured_media":215950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810,81886,16693],"tags":[81903,81898,23,82041],"acf":[],"yoast_head":"\nCaesars, MGM Could See Cyber Insurance Rates Rise<\/title>\n<meta name=\"description\" content=\"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars, MGM Could See Cyber Insurance Rates Rise\" \/>\n<meta property=\"og:description\" content=\"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-21T20:58:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-24T02:26:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/\",\"name\":\"Caesars, MGM Could See Cyber Insurance Rates Rise\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg\",\"datePublished\":\"2023-09-21T20:58:35+00:00\",\"dateModified\":\"2023-09-24T02:26:23+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg\",\"width\":1280,\"height\":720,\"caption\":\"MGM's Excalibur on the Las Vegas Strip. The operator was included in the Goldman Sachs buyback basket. (Image: YouTube)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Casino Ransomware Attacks Could Stoke Higher Insurance Costs\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Caesars, MGM Could See Cyber Insurance Rates Rise","description":"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/","og_locale":"en_US","og_type":"article","og_title":"Caesars, MGM Could See Cyber Insurance Rates Rise","og_description":"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.","og_url":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-09-21T20:58:35+00:00","article_modified_time":"2023-09-24T02:26:23+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/","url":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/","name":"Caesars, MGM Could See Cyber Insurance Rates Rise","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg","datePublished":"2023-09-21T20:58:35+00:00","dateModified":"2023-09-24T02:26:23+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Caesars, MGM could endure higher cyber insurance costs following ransomware attacks.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/exc.jpg","width":1280,"height":720,"caption":"MGM's Excalibur on the Las Vegas Strip. The operator was included in the Goldman Sachs buyback basket. (Image: YouTube)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/caesars-mgm-could-see-cyber-insurance-rates-rise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Casino Ransomware Attacks Could Stoke Higher Insurance Costs"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/290742"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=290742"}],"version-history":[{"count":5,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/290742\/revisions"}],"predecessor-version":[{"id":290898,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/290742\/revisions\/290898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/215950"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=290742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=290742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=290742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}