Dominant Drivers of Cyber Insurance Claims
Third-party risk has emerged as a dominant driver of cyber insurance claims and material losses in 2024, according to data from Resilience Cyber Insurance Solutions Inc.
Ransomware and Vendor Attacks
While ransomware remained the top cause of loss in 2024 with 43% of incurred claims involving first-party ransomware incidents, another 18% involved ransomware attacks targeting vendors. Together, this exposure accounted for a staggering 61% of all claims with losses.
Sector-Specific Claim Frequency
The transportation, manufacturing, and health care sectors led in incurred claim frequency, potentially due to their reliance on often outdated operational technology and high downtime costs.
Transfer Fraud and Phishing Trends
Transfer fraud incidents increased, rising from 14% of incurred claims by frequency in 2023 to 18% in 2024. Meanwhile, phishing attacks became less common, leading to just 9% of incurred claims in 2024, a significant drop from 2023, during which it led to 20% of incurred claims.
Insights from Resilience
“Third-party risk isn’t only making headlines, it’s driving unprecedented losses,” said Vishaal Hariprasad, co-founder and CEO of Resilience. “Businesses can no longer afford to consider their partners’ vulnerabilities as siloed from their own.”
