Cyber insurance claims fall despite persistent ransomware threat

Cyber insurance claims fall despite persistent ransomware threat
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Sirma Boshnakova Insurance Western & Southern Europe, Allianz Direct, Allianz Partners | Allianz SE

Ransomware continues to be the main cause of large cyber insurance claims, making up 60% of the value of such claims exceeding €1 million in the first half of 2025, according to Allianz Commercial’s latest Cyber Security Resilience Outlook. While attacks remain frequent and sophisticated, the severity of losses has dropped by more than half and the frequency of large claims has fallen by about 30%. This improvement is attributed to larger companies investing in better detection and response systems.

Despite these gains, Allianz warns that risks are broadening. The reliance on digital supply chains, stricter privacy regulations, and more advanced social engineering attacks are increasing potential exposures for all businesses. Smaller and mid-sized firms are now being targeted more often as attackers shift focus from larger corporations.

Michael Daum, Global Head of Cyber Claims at Allianz Commercial, commented: “Several ransomware events have hit the headlines this year, but overall, we see that insured losses from these attacks have decreased in 2025 to date. Insureds’ increased detection and response capabilities are helping to stop some attacks at an early stage. Every step an attacker progresses, and every minute that they are in the system, the impact goes up exponentially. The cost of a ransomware attack that progresses to data theft and encryption can be 1,000 times higher than an incident that is detected and contained early.”

The report notes a trend toward double extortion tactics—where attackers not only demand ransom but also steal data—with 40% of large claim values involving data theft in early 2025 compared to 25% in all of 2024. Data breaches at small and medium firms involved ransomware in 88% of cases versus 39% at large firms.

The retail sector has become one of the top three industries affected by cyber incidents over the past five years. Retailers face high risks due to their revenue size, handling large volumes of personal data, and exposure to business interruption.

Non-attack incidents such as wrongful collection or processing of data and technical failures accounted for a record 28% of large claim values during 2024. Businesses continue to face challenges related to digital supply chains and evolving privacy regulations.

In Germany, figures show that while cyber insureds saw a loss impact increase of about 70% over four years, the broader economic impact from cybercrime rose by 250%. This suggests insured companies benefit from risk mitigation efforts required for coverage.

Jarrod Schlesinger, Global Head of Financial Lines and Cyber at Allianz Commercial said: “The global cyber insurance market is predicted to more than double to close to US$30bn by the end of the decade, yet penetration remains relatively low. We need to underline that cyber insurance plays an important role in helping build resilience at a time of rapid technological and regulatory change. Many companies remain unaware of the breadth of coverage offered, which can include costs associated with breach response, business interruption, and regulatory fines and penalties.”

Allianz Commercial serves mid-sized businesses as well as large enterprises across various sectors worldwide. In 2023, its integrated business generated around €18 billion in gross premium globally.

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