Detection & response tools increasingly important as cyber claims surge
Cyber Security Trends 2023
What’s in this report from Allianz Commercial:
Following two years of high but stable loss activity, 2023 has seen a worrying resurgence in ransomware and extortion claims as the cyber threat landscape continues to evolve, Allianz Commercial warns in a new report.
Hackers are increasingly targeting IT and physical supply chains, launching mass cyber-attacks and finding new ways to extort money from companies, large and small. Most ransomware attacks now involve the theft of personal or sensitive commercial data for the purpose of extortion, increasing the cost and complexity of incidents, as well as bringing greater potential for reputational damage.
Allianz Commercial’s analysis of large cyber losses shows the number of cases in which data is exfiltrated is increasing every year — doubling from 40% in 2019 to almost 80% in 2022, with 2023 significantly higher.
“Cyber claims frequency has picked up again this year as ransomware groups continue to evolve their tactics,” said Scott Sayce, global head of cyber at Allianz Commercial. “Based on claims activity during the first half of 2023, we expect to see around a 25% increase in the number of claims annually by year-end. The attackers are back, and focused again on Western economies, with more powerful tools, enhanced processes and attack mechanisms. Given this dynamic, a well-protected company is necessary to stand up to the threat and, increasingly, the most important element of this is developing strong detection and fast response capabilities.”