As cybercrime claims activity rises, Coalition’s report emphasizes the critical role of robust cybersecurity measures.
Cyber claims continued to rise in 2023, with overall frequency trending upward and severity increasing by 10% year-over-year to an average loss of $100,000, according to a policyholder analysis by Coalition Inc., a cyber managing general agent.
“Cybercrime is a thriving business that adversely impacts the global economy. In 2023, the Federal Bureau of Investigation (FBI) received more than 880,000 complaints of cybercrime with reported losses of $12.5 billion,” the Coalition report noted.
The surge in claims reported to Coalition was primarily driven by ransomware attacks in the first half of the year. Despite these challenges, businesses that reinforced their security controls generally fared better. In fact, while global ransom payments surpassed $1 billion in 2023, Coalition said its policyholders experienced a 54% drop in ransomware severity in the second half of the year.
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