In today’s digital business environment, technology risk continues to be a critical concern for organizations of all sizes. As a result, the use of cyber risk insurance continues to increase and is a significant strategic component for managing cyber risk, the latest Marsh report on The evolution of cyber claims in Europe” reads.

The report is the result of extensive research and analysis by our expert team. This report provides valuable insights into the current trends and challenges in cyber claims, equipping organizations with the knowledge needed to navigate the evolving cyber risk environment.

“In 2024, Marsh’s European clients reported a notable increase in incidents, with approximately 10% of our cyber insurance clients notifying Marsh of a potential claim. This was driven by incidents within organizations’ digital supply chains, including the global IT outage on July 19, 2024, which stemmed from a faulty CrowdStrike software update. When assessing organizational risk, it is important to proactively address how future technology risks may amplify existing risk. While cyber extortion incidents have stabilized, they remain a top concern due to their profound impact on affected organizations, encompassing financial, operational, reputational, and potential regulatory consequences”, the report’s authors stated in the introductory chapter.

Here are some of the main findings of the report:

• A significant increase (61%) in cyber claim notifications, compared to 2023.

• Approximately 10% of European clients that purchased a cyber policy reported an event in 2024.

• Claim notifications were driven in part by digital supply chain events, especially the global IT outage on July 19, 2024, that followed a faulty CrowdStrike software update.

• Insured organizations developed more familiarity, trust, and confidence in incident response assistance provided as part of cyber insurance policies. And they generally aligned internal stakeholders — risk management and information security functions — more effectively, contributing to an uptick in notifications and fulfilling insurance policy obligations.

• The share of cyber extortion claims notifications, including for ransomware, stabilized at 18% of all notifications. It remains a top concern given the informational and operational impact these events have on the affected organizations.

• Following claims management best practices, especially reporting potentially impactful incidents early to cyber insurers and to Marsh, was a key initial step enabling long-term claims management and insurance reimbursement success.

• A proactive approach to cyber risk management, including efforts to understand and measure the impact of potential cyber incidents, is key and helps to avoid incidents or to achieve better outcomes when one occurs.

Read the full report here.