Ransomware, fraud, and lawsuits drive cyber insurance claims to new peaks

At-Bay’s 2026 InsurSec report analyzes >100,000 policy years and documents a 7% increase in claim frequency and record severity (avg $221k); ransomware was the costliest incident type (avg $508k). Remote access dominated ransomware entry (87%), with VPN compromises responsible for 73% of identified intrusions and SonicWall implicated in one in three claims. The Akira ransomware group surged (364% increase in late 2025), with rapid deployments, average demands of $1.2M and higher-than-average payments; victims with 24/7 MDR avoided encryption. Financial fraud remained common (≈30% of claims) with email-based entry and attackers leveraging trusted cloud platforms, while third-party liability claims (including CIPA litigation) rose sharply and business interruption materially increased ransomware losses.