Summary
This technical report presents a focused study on large cyber claims, examining trends, threats, and tailored solutions within the context of AXA XL's Global Cyber insurance portfolio. The analysis reveals that 88.1% of total incurred losses arise from claims exceeding $1 million, highlighting the significance of understanding the claims landscape for underwriters, actuaries, brokers, and clients. The report outlines the increasing severity of large losses, particularly in ransomware claims, and discusses the various insuring agreements triggered during these claims. It details the evolving nature of cyber threats, including the rise in ransomware incidents and the impact of business interruptions caused by such attacks. The report emphasizes the importance of robust business continuity planning and the need for insurers to refine underwriting practices and risk management solutions based on emerging trends. Additionally, it notes improvements in risk management practices among organizations, as evidenced by a decrease in claims frequency where backups were affected and a reduction in recovery times following ransomware attacks.
