Insureds have better defenses, but attackers are becoming more sophisticated too.
Insureds are likely relieved that cyber insurance rates have stabilized since 2021 and 2022 when renewal price increases of 80%, 90%, or 100% were plausible. In the final quarter of 2024, rates only increased 0.2% to 1.6%, according to an S&P Global report.
This market stabilization is the result of insureds proactively adopting risk management tools to reduce their vulnerability to an attack. Ransomware, once a scourge for insureds, accounted for less than 20% of cyber claims in 2022 and 2023, according to a report from Marsh.
“There’s a trend toward larger, more sophisticated businesses being more on the ready with disaster recovery plans, business continuity plans, and incident response plans. They’re more likely to be able to restore their operations from backups,” said Patrick Thielen, global head of cyber at Liberty Mutual.
Companies are upping their defenses, but attackers are increasing their sophistication, too. Double extortion, artificial intelligence and other strategies are…
