INSPECTING ARCHIVED INTELLIGENCE (OUTDATED VERSION).

Businesses' Cybersecurity Insurance Claims Become Less Frequent But More Expensive

| 2026-10-23 14:41 CRITICAL LOW DATA BREACH
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Executive Summary
AI-generated
A significant increase in cybersecurity insurance claims has been reported, with the size of the US domestic cyber direct written business nearly tripling since 2020. Chubb, Beazley and St. Paul Travelers are the top three insurers by value of their direct written premiums. The average claim size for large businesses with at least $1 billion in annual revenue increased to $4.4 million in 2025, up from $2.2 million in 2024 and a 586% increase since 2021. This growth is attributed to rising business interruption expenses and the growing cost of data breach and privacy-related litigation. The current status indicates that insurers are seeing fewer but more expensive cybersecurity insurance payout claims among large businesses, with only 10 claims per 100 policies in 2025 compared to 15 in 2024.
Technical Mitigations AI-generated
• Reset credentials and API keys that may have been exposed, and review access logs for the affected accounts or integrations.
Intelligence Metadata
Actors / Malware / CVEs / Campaigns
Target & Sectors
Global Scope financefinance
Incident Timeline
‎between 2024
Smaller firms' average claim size decreased from $215,000 in 2024 to $142,000 in 2025.
‎2026/10/23
Insurers are responding to a more complex threat environment by offering innovative coverage options, such as cloud service outage mechanisms.
organisation NAIC
NAIC attributed the skyrocketing growth to “rising business interruption expenses and the growing cost of data breach and privacy-related litigation.”
organisation Chubb
Chubb, Beazley and St. Paul Travelers are the top three insurers by the value of their direct written premiums, according to the report.
organisation St. Paul Travelers
Chubb, Beazley and St. Paul Travelers are the top three insurers by the value of their direct written premiums, according to the report.
financial $4.4 claim
For businesses with at least $1 billion in annual revenue, the average size of a claim in 2025 was $4.4 million — double the figure from 2024 and up 586% since 2021.
financial $759,000 Entities
In 2025, it was $759,000, a 23% increase from the 2024 figure of $619,000.
organisation Frontier AI
…g the number of incidents reaching a claim,” NAIC said in its report, “even as the incidents that do occur, particularly at large organizations, are becoming noticeably more expensive to resolve.” Frontier AI models, the maturing cybercrime ecosystem , persistent supply-chain risks and increasing nation-state activity are all fueling a more dangerous cybersecurity environment, according t…
organisation NAIC’s
NAIC’s report also highlighted innovations in the cybersecurity insurance market that show how insurers are responding to changes in the threat environment.
organisation AIG
In August, AIG expanded its coverage options to include a mechanism for helping businesses quickly cope with cloud service outages.
Tactical Metrics
Metrics
financial
4,400,000
Financial Impact / Stolen Funds
For businesses with at least $1 billion in annual revenue, the average size of a claim in 2025 was $4.4 million — double the figure from 2024 and up 586% since 2021.
Metrics
financial
759,000
Financial Impact / Stolen Funds
In 2025, it was $759,000, a 23% increase from the 2024 figure of $619,000.
Intelligence Sources
Cybersecurity Dive 2026-10-23