Nearly two-thirds of ransomware claims result in losses: Resilience

Resilience Cyber ​​​​Insurance Solutions LLC said on Tuesday that 64% of ransomware-related claims in its portfolio resulted in a loss.

Only 9.7 percent of customers paid extortion fees, according to Tuesday’s report from Resilience.

“This reflects a trend of increasing recovery costs from ransomware attacks, regardless of whether an extortion is paid,” according to the cyber insurer.

The severity of ransomware claims in the Resilience portfolio also increased dramatically from 2022 to 2023, with a 411% increase in the financial severity of events, the report said.

Healthcare and manufacturing were the hardest-hit sectors in the first half of the year, but other fields, including energy, construction and engineering, came under increased attacks, the report said.

Supplier-driven claims are the fastest-growing area of ​​claims and the cause of lost claims in the overall portfolio, as 35% percent of claims stemmed from a supplier failure in 2023. In 2024, this number is already 40% and is expected to increase.

Resilience said in its report that “people are still the weakest link. Many of this year’s most notable and destructive cyber incidents have human error at their core.”

After ransomware, the costliest cyber events were email compromise and wire fraud.