Ransomware claims frequency grew by 27% in the first half of 2023 according to a report from global Active Insurance provider Coalition.Paired with a record 117% increase in claims severity from the previous year, the data in the "2023 Cyber Claims Report: Mid-year Update" underscores the changing dynamics of the cyber threat environment that businesses currently navigate.Overall Cyber Claim Growth: Coalition reported a 12% rise in cyber claims during the initial six months of 2023, heavily influenced by increases in ransomware and funds transfer fraud (FTF). Impact on High Revenue Businesses: Companies with revenues exceeding $100 million faced a higher brunt, registering a 20% uptick in the number of claims and a 72% increase in claims severity compared to the second half of 2022. Rising Ransom Demands: The average ransom demand stood at $1.62 million, marking a 47% increase from the past six months and a 74% growth year-on-year. FTF Claim Dynamics: FTF claims frequency grew by 15% in the first half of 2023, with FTF severity up by 39% to an average loss surpassing $297,000. Email Platform Security: Businesses using Google Workspace for email showed stronger security measures compared to those using Microsoft Office 365 or on-premises Microsoft Exchange. The data suggests that M365 users had more than double the likelihood of facing a claim relative to Google Workspace users. Meanwhile, on-premises Microsoft Exchange users had almost three times the probability. Recovery and Risk Reduction: Coalition’s Active Cyber Insurance contributed to the recovery of $23 million in pilfered funds, which directly benefited policyholders.
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