Ransomware claims decreased by 7% in 2024 compared to the previous year, according to a new report from Coalition, one of the world’s largest cyber insurers. The report provides a broad overview of the cyber risk landscape, shedding light on the behavior of cybercriminals and offering insights into strategies for avoiding digital security breaches.
The report highlights that industries serving consumers, as well as manufacturing sectors like agriculture, food and beverage, mining, and plastics, filed the most ransomware claims. However, companies in the energy sector filed the highest value claims. Despite the overall decrease in ransomware claims, the amount of insurance funds requested to cover these attacks dropped by 7% from 2023 to 2024.
In a reflection of the growing importance of supply-chain security, Coalition reported that more than half of all claims (52%) were linked to third-party breaches. The average claim for these incidents was $42,000. Notably, companies using Change Healthcare for transaction processing reported claims averaging $22,000, while those using car dealership vendor CDK Global filed claims averaging $63,000.
The report also included a stark warning for businesses that were unable to secure insurance due to unresolved cybersecurity vulnerabilities. Coalition revealed that 614 companies that failed to address critical security issues flagged by the insurer later suffered ransomware attacks, resulting in a combined loss of $307 million.
In terms of recovery, Coalition reported success in recouping funds lost in funds-transfer fraud incidents. The insurer recovered $31 million in 2024, with recovery rates improving when policyholders quickly reported fraudulent transactions. In around 25% of cases, some money was recovered, while 12% of cases saw full recovery.
