Are Ransomware Trends Changing Cyber Insurance Dynamics?

UK companies have experienced a surge in cyber insurance claims in recent years, with 2023 marking an exceptionally high volume primarily driven by ransomware breaches. This influx has been significantly influenced by the MOVEit campaign, which had a widespread impact across various industries. Sectors such as communications, media, technology, retail, wholesale, power utilities, and financial institutions have seen a notable increase in claims, underlining their susceptibility due to intricate third-party supply chains and the valuable data they house. While the claims in 2024 saw a 20% decrease from the previous year, they still remain elevated compared to earlier years. Ransomware remains the predominant contributing factor, with related claims having doubled compared to previous figures. Despite the rise in ransom demands, fewer victims have been reported, as attackers aim to optimize gains from successful breaches. This has led to expert negotiations often slashing extortion demands by more than 60%. Many companies now effectively resist paying ransoms thanks in part to enhanced cybersecurity measures and secure data backups that help detect and mitigate threats. Furthermore, the reputational fallout from ransomware attacks is now perceived as less damaging, reducing the compulsion to pay for concealment. As a consequence, some attackers have resorted to threatening executives with physical violence. The report underscores ongoing threats but also highlights the progression in defensive strategies and shifting perceptions in the face of evolving cyber challenges.