Transforming Cyber Insurance Claims into Strategic Risk Management Insights

Transforming Cyber Insurance Claims into Strategic Risk Management Insights

In a recent Risk Management Magazine article, Jeremy Gittler, Global Head of Claims at Resilience, emphasizes that cyber insurance claims hold more than financial data; they reveal the vulnerabilities and operational gaps that, if addressed, can reduce future losses. The 2024 NetDiligence Cyber Claims Study found five-year average incident costs at $937,000 for small to medium-sized enterprises (SMEs) and $36.1 million for large companies. Ransomware remains the leading cause of claims, with business interruption costs accounting for nearly half of SME losses and more than 70% for large organizations.

Gittler details two 2025 ransomware incidents involving the CHAOS variant. Both victims had identical coverage and retentions but faced different operational realities. One, a business services firm with viable backups, used its leverage to negotiate a ransom down to 15% of the demand. The other, a manufacturer with compromised backups, settled for under one-third of the demand to secure a decryption key. Both outcomes were supported by cyber insurance resources.

Post-incident investigations revealed phishing and social engineering as the entry points, with attackers impersonating IT staff via phone and video calls. These findings prompted enhanced employee training and strengthened incident response protocols.

Gittler advises that risk professionals analyze claims to identify root causes, strengthen security, and refine response plans. He notes that comprehensive cyber insurance should include coverage for cyber extortion, crisis services, and broad loss scenarios, with the insurer’s consent for related expenses. Building relationships with external experts before an incident, he adds, can significantly improve response effectiveness.