Ransomware claims frequency grew by 27% in the first half of 2023 according to a report from global Active Insurance provider Coalition.
Paired with a record 117% increase in claims severity from the previous year, the data in the “2023 Cyber Claims Report: Mid-year Update” underscores the changing dynamics of the cyber threat environment that businesses currently navigate.
Key Findings from the Report
- Overall Cyber Claim Growth: Coalition reported a 12% rise in cyber claims during the initial six months of 2023, heavily influenced by increases in ransomware and funds transfer fraud (FTF).
- Impact on High Revenue Businesses: Companies with revenues exceeding $100 million faced a higher brunt, registering a 20% uptick in the number of claims and a 72% increase in claims severity compared to the second half of 2022.
- Rising Ransom Demands: The average ransom demand stood at $1.62 million, marking a 47% increase from the past six months and a 74% growth year-on-year.
- FTF Claim Dynamics: FTF claims frequency grew by 15% in the first half of 2023, with FTF severity up by 39% to an average loss surpassing $297,000.
- Email Platform Security: Businesses using Google Workspace for email showed stronger security measures compared to those using Microsoft Office 365 or on-premises Microsoft Exchange. The data suggests that M365 users had more than double the likelihood of facing a claim relative to Google Workspace users. Meanwhile, on-premises Microsoft Exchange users had almost three times the probability.
- Recovery and Risk Reduction: Coalition’s Active Cyber Insurance contributed to the recovery of $23 million in pilfered funds, which directly benefited policyholders.
Why Are Ransomware Claims On The Rise?
Chris Hendricks, Head of Coalition Incident Response, commented:
“The cyber threat landscape has evolved, leading to more frequent and severe claims. It’s vital for organizations to prioritize risk management and enhance their security measures.”
To access comprehensive insights and findings, check out the full 2023 Cyber Claims Report: Mid-year Update.