You might think hackers have moved on to new ways to exploit individuals. However, that is not the case! Ransomware still represents the highest categories of cyber insurance claims. In the first half of 2025, ransomware was the route of about 60% of claims exceeding €1 million in payouts; a little concerning. The figures speak for themselves, ransomware hackers are not slowing down.
Hackers don't just lock files anymore as many ransomware hackers will now steal the data and ask for payment on it.
Why does this make things worse? Because there are implications for having the information stolen, so you have:
People make mistakes
Hackers are still taking advantage of an array of simple approaches including phishing emails, fake logins, and social engineering approaches. The use of AI has only made the fake email approaches more realistic.
One group, Scattered Spider, can breach an enterprise and implement a ransomware program in fewer than 24 hours.
The good news is as of early 2025 the average claims were reduced by more than 50%, and here's what they did.
Cyber insurance is also growing quite rapidly. Some industry experts project it to be nearly worth $30 billion in just 7 years from now, in 2030.
The only challenge is that many companies do not have insurance even though the insurance can provide coverage, in these areas:
Ask yourself this: Do you have a working backup? Have you tested your response plan? If not, then you should do that now.
Ransomware Has Big Financial Implications
Data Theft is IncreasingHackers don't just lock files anymore as many ransomware hackers will now steal the data and ask for payment on it.
Why does this make things worse? Because there are implications for having the information stolen, so you have:
- Large fines from regulatory bodies
- Expensive notifications to the customer regarding stolen information
- Potential litigation
People make mistakes
Hackers are still taking advantage of an array of simple approaches including phishing emails, fake logins, and social engineering approaches. The use of AI has only made the fake email approaches more realistic.
One group, Scattered Spider, can breach an enterprise and implement a ransomware program in fewer than 24 hours.
Who Is Attacked Most?
- Large retail companies suffer greatly, given they have massive customer bases and partnerships.
- Supply chains are attacked which hazard many companies at once. Your company can have great systems, which may be fine, but your vendor can have a gap which can put all your systems at risk.
- Not all claims are because of hackers. Technology can fail, and privacy steps, because of something like a wrong setting in a database, out of the same size.
How Companies Reduce The Damage
Simple steps that work:The good news is as of early 2025 the average claims were reduced by more than 50%, and here's what they did.
- Systems that have been updated and patched
- Networks split into segments (so that hackers cannot move laterally)
- Systems backed up offline
- MFA (multi-factor authentication)
Rules and Insurance Also Help
New rules in Europe, including DORA and NIS2, are driving companies to take cyber risks much more seriously.Cyber insurance is also growing quite rapidly. Some industry experts project it to be nearly worth $30 billion in just 7 years from now, in 2030.
The only challenge is that many companies do not have insurance even though the insurance can provide coverage, in these areas:
- Recovering from the hack
- Downtime on the business
- Fines associated with the breach
Conclusion
So yes, ransomware is still the number one cause of expensive claims due to cyber incidents. Hackers are getting smarter, but the basic protocols, backups, and proactive response can help companies defend against them.Ask yourself this: Do you have a working backup? Have you tested your response plan? If not, then you should do that now.
