Record-breaking Cyber Insurance Claims Achieved in the UK
In the ever-evolving landscape of cyber threats, a new report by Marsh UK sheds light on the trends of cyber insurance claims in 2024. The report, based on an analysis of claims submitted by Marsh UK clients, reveals that ransomware continues to be the biggest driver of claims.
One of the most notable findings is the decrease in the number of organizations paying ransom to extortionists. This trend could be attributed to improved cybersecurity measures that are now detecting threat actors in the act, preventing encryption, and allowing for quicker recovery.
However, the report also highlights a worrying trend - ransom demands are increasing as victim numbers decrease. Some ransomware groups are even threatening executives and their families with physical violence if the ransom is not paid. This has led to a breach of home addresses and phone numbers, causing genuine fear and anxiety for individuals and their families.
Despite the reputational consequences of suffering a ransomware attack being perceived as less severe than in the past, organizations are less concerned about being publicly identified as victims. This could be due to the increasing understanding that such incidents are becoming more common and are often the result of sophisticated attacks.
The report found that ransomware-related claims in 2024 were double that of 2020, 2021, and 2022. Interestingly, the communications, media, and technology; retail and wholesale; power and utilities; and financial institutions sectors saw an increase in claims.
The report also noted that financial institutions and professional services consistently notify a higher number of incidents, and these sectors also hold a high proportion of cyber-insurance policies. A larger number of insurers are also demanding prospective clients improve their security posture before offering coverage, which is helping to make them more secure.
In a positive development, many organizations have secure backups that eliminate the need for a decryption key, reducing their reliance on ransom payments. However, the report did not provide specific numbers for the total number of claims or the total amount paid out in claims in 2024.
The report did not provide any information on the cyber insurance market's projected value by 2033. It did, however, attribute the high number of claims in 2023 to the impact of the MOVEit campaign, which was exploited by the CLOP ransomware group. The exact nature of the MOVEit campaign and its impact on the claims were not specified in the report.
In conclusion, while the number of claims decreased 20% compared to 2023, they were still around one-third higher than in 2020, 2021, and 2022. The report underscores the importance of robust cybersecurity measures and the need for organizations to continually review and improve their security posture to protect against the ever-evolving threat of ransomware attacks.
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