The biggest drivers of cyber losses are business interruption and restoration costs, according to Allianz Global Corporate & Specialty (AGCS), which reported that the two accounted for more than half of the value ($885 million) of nearly 3,000 insurance cyber claims.

The average total cost of recovery and downtime following a cyber incident more than doubled during the past year, growing from $761,106 to $1.85 million. Behind many of these claims are ransomware events, which continue to grow in severity and frequency. AGCS reported several factors are propelling these increases, including:

• Growth in the number of attack patterns, such as double and triple extortion campaigns
• The development of "ransomware as a service" or selling malicious software for third-party use
• The enabling of anonymous payments via cryptocurrency
• Skyrocketing ransom demands
• Rising supply chain attacks

"The number of ransomware attacks may even increase before the situation gets better," Scott Sayce, global head of cyber at AGCS, said in a release. "Not all attacks are targeted. Criminals also adopt a scattergun approach to exploit those businesses that aren't addressing or understanding the vulnerabilities they may have. As insurers, we must continue to work with our clients to help businesses understand the need to strengthen their controls. At the same time, in today's rapidly evolving cyber insurance market, providing emergency response services, as well as financial compensation, is now the standard."