Cyber claims rise in first half: Report

Cyber liability claims severity rose, and business email compromises was the leading source of loss in the first half of 2024, according to a report released Thursday by cyber insurer Coalition Inc.

Overall claims severity increased by 14% compared with the same period last year to an average loss of $122,000, primarily driven by a spike in ransomware severity as hackers and criminals targeted larger businesses.

Ransomware claims severity spiked by 68% to an average loss of $353,000 through the first half of 2024, according to the report.

“The use and impact of ransomware remains as volatile as ever,” Rob Jones, Coalition’s head of claims, said in a statement issued with the report. “We saw a marked spike in the severity and demand amounts.”

The frequency of business email compromises, or BEC, events increased by 4%, accounting for nearly one-third of all cyber insurance claims. BEC frequency trended higher throughout 2023, the report said.

BEC was the most frequent event by type, comprising 32% of incidents, followed by funds transfer fraud at 27% and ransomware at 18%, report data showed. “Other” loss types accounted for 23%.

Severity varied widely among businesses of different sizes.

Claims severity among businesses with more than $100 million in revenue increased by 140% to an average loss of $307,000, a historic high. Businesses with $25 million to $100 million in revenue increased saw a 23% jump to an average loss of $129,000, and companies with less than $25 million in revenue declined 4% to an average of $73,000.