Increased cyberinsurance claim sizes fueled by ransomware

More severe ransomware attacks have prompted cyberinsurance claim sizes to increase by 14% to $122,000 in average losses during the first six months of 2024 despite a decline in the number of claims from the same period last year, according to The Record, a news site by cybersecurity firm Recorded Future.

Almost 75% of all reported cyberinsurance claims during the first half of this year were attributed to business email compromise attacks, ransomware incidents, and fund transfer fraud, with average ransomware claim losses totaling $353,000, which was 68% higher than the first quarter of 2023, a report from Coalition revealed. While ransomware claims among organizations with revenues ranging from $25 million to $100 million have continuously decreased during the past year, such figures are expected by Coalition to rise as the winter season approaches. Additional findings showed ransomware operations’ increasing willingness to significantly reduce demanded ransom payments, which have been paid by nearly 40% of all Coalition policyholders impacted by intrusions.