Record-breaking UK Cyber Insurance Claims Reach Second-Highest Level
In a recent report by Marsh, the 2024 UK cyber insurance claims trends, it was revealed that ransomware attacks continue to pose a significant threat to businesses. The report, based on claims submitted by Marsh UK clients, shows a decrease of 20% in claims compared to 2023, but they still remain one-third higher than in 2020, 2021, and 2022.
One of the key findings is that ransomware is the biggest driver of claims, with ransomware-related claims in 2024 being double that of the previous years. This trend suggests that threat actors are aiming to maximize the profitability of successful attacks.
Interestingly, organizations are less concerned about being publicly identified as ransomware victims. This is due to the prevalence of such attacks, and the decreasing perception of severe reputational consequences. Some organizations do not succumb to the pressure to pay solely to prevent 'naming and shaming' or dissemination of information on the dark web, as their cybersecurity measures have detected the threat actor in the act, preventing encryption.
The report does not provide specific information about the industries or types of companies that were most affected by ransomware attacks in 2024. However, it notes that financial institutions and professional services consistently notify a higher number of incidents, but also hold a high proportion of cyber-insurance policies.
Another concerning trend is the increase in ransom demands. As victim numbers decrease, threat actors are demanding higher ransoms. Some ransomware groups are even threatening executives and their families with physical violence if they do not pay up.
Despite these challenges, there are signs of progress. Fewer organizations are electing to pay their extortionists due to having secure backups and stronger cybersecurity measures. Moreover, a larger number of insurers are demanding prospective clients improve their security posture before offering coverage, which is helping to make businesses more secure.
The report also highlights a positive development: extortion negotiations involving ransomware experts often result in reductions of over 60% from the initial demands to the final payment. This suggests that businesses are becoming more adept at dealing with ransomware attacks.
However, the report does not provide any information about the total number of claims or the total amount of money paid out in claims. It also does not provide any information about the specific types of ransomware attacks that were most common in 2024.
The report does mention a potential cause for the unusually high claims in 2023: the impact of the MOVEit campaign. As cybercrime including ransomware has been growing significantly year over year, reaching an unprecedented scale and surpassing illegal drug trade profits by 2024, with compensation costs expected to hit around $10.5 trillion by 2025, it is clear that businesses must remain vigilant against these threats.
Threat actors have also been accessing home addresses and phone numbers of executives and their families due to breaches, causing fear and anxiety. This underscores the need for businesses to prioritize not only their cybersecurity but also the security of their employees and their families.
In conclusion, while the 2024 UK cyber insurance claims report shows a decrease in claims compared to 2023, it underscores the ongoing threat posed by ransomware. Businesses must continue to invest in their cybersecurity measures and remain vigilant against these threats.
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