Latest news with #ActiveCyberPolicy
Business Wire
07-05-2025
- Business
- Business Wire
Coalition 2025 Cyber Claims Report Finds Ransomware Stabilized but Remains Costly for Businesses
SAN FRANCISCO--(BUSINESS WIRE)-- Coalition, the world's first Active Insurance provider designed to prevent digital risk before it strikes, today published its 2025 Cyber Claims Report, which details emerging cyber trends and their impact on Coalition policyholders throughout the full year of 2024. The report found that ransomware claims stabilized in 2024 despite remaining the most costly and disruptive type of cyberattack. The majority of 2024 claims (60%) originated from business email compromise (BEC) and funds transfer fraud (FTF) incidents, with 29% of BEC events resulting in FTF. 'Over the past year, our claims data clearly demonstrates one thing: Active Insurance works,' said Robert Jones, Head of Global Claims at Coalition. 'Combining Coalition's Active Data Graph, which provides a massive amount of data insights, with security tools and incident response, helps Coalition prevent claims from happening in the first place. And, when matters were reported to Coalition, 56% were handled without any out-of-pocket payments by the policyholder. We believe that this proactive engagement is a critical aspect of reducing global cyber risk.' Ransom demands from threat actors decreased in 2024, dropping 22% year-over-year (YoY) to an average of $1.1 million. Notably, the average demand in the latter half of 2024 fell below $1 million for the first time in more than two years. Of all ransomware claims, Akira ransomware was the most prolific variant for Coalition policyholders, accounting for 13% of claims in 2024. The Black Basta variant accounted for just 3% of all ransomware claims, but was the highest in terms of demand, with an average of $4 million. 'While overall claims have stabilized, cyber attackers, and ransomware actors in particular, still pose a tremendous threat to businesses, with the average demand still in the millions of dollars. Unfortunately, ransomware is already back with a vengeance in 2025, as March held the highest volume of public ransomware cases of all time,' continued Jones. 'Coalition continues to be an active partner in the fight against bad actors. We alert our policyholders to vulnerabilities in their networks, risky security practices, and the best ways to mitigate threats to reduce the impacts of cyber attacks.' In 2024, Coalition's cooperative efforts with authorities and panel partners contributed to the successful clawback of $31 million for policyholders, with an average recovery of $278,000. Coalition has firsthand knowledge that policyholders that quickly report FTF events have a greater likelihood of recovery. Last month, Coalition introduced a new financial incentive in its Active Cyber Policy 1. Clients can receive lower retentions when they report FTF incidents within 72 hours of the initial fraudulent transfer, encouraging prompt action to improve the odds of recovery. Other key findings from the report include: As claims frequency decreased by 7% YoY, claims severity remained stable. Ransomware claims frequency decreased by 3% and severity decreased by 7% YoY. BEC claims severity increased by 23%. FTF claims frequency decreased by 2% and severity decreased by 46% YoY. The sharp decline in severity follows the all-time high in 2023. When deemed reasonable and necessary, 44% of policyholders that experienced a ransomware incident opted to pay the ransom. Coalition Incident Response (CIR) was able to negotiate ransom payments down 1 by an average of 60%. Coalition policyholders experienced 73% 2 fewer claims than the industry average. This report presents statistics, charts, and risk insights derived from data collected from Coalition policyholders in the United States, Canada, the United Kingdom, and Australia. Download the full 2025 Cyber Claims Report from Coalition to learn more: __________________ 1 Applies to all non-admitted surplus lines new business and renewal quotes in the United States on or after April 15, 2025. Exclusions and limitations apply. See disclaimers and policy as issued. 2 Ransomware negotiation data based on cases handled by Coalition Incident Response, Inc. a wholly-owned affiliate firm of Coalition, Inc. made available to all policyholders as an option via incident response firm panel selection. 3 Industry average based on data reported by US insurers to the National Association of Insurance Commissioners (NAIC). Comparison performed using 2023 claims frequency data from Coalition and NAIC. Claims frequency is calculated using the number of standalone cyber claims reported by the NAIC, divided by the average of standalone cyber policies in force at the current and prior year-ends. Expand About Coalition Coalition is the world's first Active Insurance provider designed to help prevent digital risk before it strikes. By combining comprehensive insurance coverage with cybersecurity tools, Coalition helps businesses manage and mitigate potential cyberattacks. Leveraging its relationships with leading global insurers and capacity providers, including Coalition Insurance Company, Coalition offers Active Insurance products to businesses in the United States, the United Kingdom, Canada, Australia, Germany, Denmark, and soon in Sweden. Policyholders can receive automated cyber alerts and access expert advice, as well as global third-party risk management tools through Coalition's cyber risk management platform, Coalition Control®. Insurance products are offered by Coalition Insurance Solutions Inc. ('CIS'), a licensed insurance producer and surplus lines broker with its principal place of business in San Francisco, CA (Cal. license #0L76155), acting on behalf of a number of unaffiliated insurance companies and available on an admitted basis through Coalition Insurance Company ('CIC') a licensed insurance underwriter (NAIC # 29530). Insurance products offered through CIS and CIC may not be available in all states. Complete license and carrier information is available here. CIS may receive compensation from an insurer or other intermediary in connection with the sale of insurance. All decisions regarding any insurance products referenced herein, including approval for coverage, premium, commission, and fees, will be made solely by the insurer underwriting the insurance under the insurer's then-current criteria. All insurance products are governed by the terms, conditions, limitations, and exclusions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms, conditions, and exclusions. Copyright © 2025. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its affiliates.
Yahoo
11-04-2025
- Business
- Yahoo
Coalition launches new surplus lines cyber policy for businesses
Coalition, a provider of Active Insurance, has launched a new surplus lines cyber insurance product to protect businesses against digital risks in the US. The new policy, dubbed Coalition Active Cyber Policy, introduces data-driven coverage enhancements to protect businesses in the evolving digital risk environment. According to Coalition, the policy offers expanded protections tailored to modern digital threats and specific benefits for policyholders that actively engage in cyber risk management. The policy is structured to reduce retention costs to zero for each year for policyholders that demonstrate proactive risk management, the company added. It includes provisions for early reporting of funds transfer fraud (FTF), offering reduced retentions for clients that report FTF incidents within a 72-hour window. The policy also extends coverage to include AI-related security events such as deepfake-enabled FTF and security failures caused by AI. The policy also features Any One Claim Coverage, which allows the full policy limit to reset for each incident within the policy period. Coalition has consolidated 11 coverages that were previously offered as endorsements into the base policy's insuring agreements. The new policy is available to organisations with annual revenues up to $5bn, and offers limits of up to $15m. Coalition chief revenue officer Shawn Ram said: 'With the launch of the Active Cyber Policy, Coalition is setting the standard for market-leading coverage that includes expanded protection against emerging digital threats and specific advantages for security-conscious policyholders. 'Active Insurance is built on the predication that proactive security measures significantly reduce the frequency and severity of claims – in fact, our data proves it. And now, brokers can offer improved policy terms that enhance coverage to clients who actively participate in their cyber risk management.' Last month, Coalition secured a $30m (Y4.39bn) equity investment from Mitsui Sumitomo Insurance, a subsidiary of MS&AD Insurance Group. This investment strengthens their existing relationship, which includes a multi-year capacity agreement in Australia and a joint initiative to provide cybersecurity solutions to small and medium-sized enterprises in Japan. "Coalition launches new surplus lines cyber policy for businesses " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
