Volume of Cyber-Insurance Claims Reaches New Heights

According to insurance broker Marsh, cyber-insurance claims reached record highs in 2023 with over 1,800 cyber claims sent in from the US and Canada.

The uptick is reportedly due to the sophistication of cyberattacks, privacy claims, a growing number of organizations purchasing cyber insurance, and the scope of the MOVEit file transfer supply chain breach.

Of all the claims made, healthcare came out on top with 17%, followed closely by communications (16%), education (9%), retail/wholesale (8%), and lastly financial institutions (8%).

Some 282 clients reported experiencing at least one cyber-extortion event in 2023, an increase from 2022, when only 172 clients reported these kinds of activities. Median extortion payments went up in tandem in 2023 compared with 2022, rising from $335,000 to around $6.5 million. Extortion demands made by the threat actors rose from $1.4 million to $20 million during this same time period.

Overall, Marsh reports of worsening cyber conditions due to the increasing activity of threat actors, but it did note that negotiating extortion payments proved to be effective in reducing the final ransom payment and the percentage of companies that paid a ransom at all fell to 23% in 2023 from 30% in 2022.