Trends in cyber insurance claims.

Coalition has released a mid-year update to its 2022 Cyber Claims Report, and details what claims for cyber losses show with respect to the evolution of cyber trends. Small businesses were found to have become more attractive targets, with the average claim cost for a small business rising to $139,000 in the first half of 2022. This represents a 58% increase over claims from the first half of 2021. 

The number of ransomware attacks decreased, however, and the dollar amount demanded by ransomware threat actors has also decreased, from $1.37 million in the second half of 2021 to $896,000 in the first half of 2022. Chris Hendricks, Coalition’s Head of Incident Response, said, “Organizations are increasingly aware of the threat ransomware poses. They have started to implement controls such as offline data backups that allow them to refuse to pay the ransom and restore operations through other means. As ransomware is on the decline, attackers are turning to reliable methods. Phishing, for example, has skyrocketed – and only continues to grow.” Phishing attacks have accounted for just over half of reported claims, Coalition says, and they have been found to be the most common trigger for cybersecurity incidents.