In 2023, there were 1,300 cases of class action suits related to data breaches — more than a twofold increase from 2022 and a fourfold increase compared to 2021. (Credit: Hein/Adobe Stock)
Cyber risk is now ranked as the number one business risk globally, well ahead of risks such as supply chain disruptions, natural catastrophes, changes in legislation, and other macroeconomic factors.
Insights from three leading insurance providers, Allianz, Coalition and Netdiligence, offer a clear understanding of the evolving threat landscape:
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Claim severity increasing every year
According to Allianz, the severity of cyber claims (by dollar value) increased by 17% in 2024, compared to just a one percent increase in 2023. Coalition witnessed a similar trend in 2024 — claims severity increased by 14% across businesses of all sizes. In businesses that have revenues exceeding $100 million, severity spiked by a whopping 140%. Moreover, when ransomware attacks led to data exfiltration, they rapidly escalated into data privacy violations, triggering more substantial insurance claims.
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