About 60% of claims handled by cyber insurer Coalition were from business email compromises—and about a third of those including funds transfer fraud.
According to it’s “2025 Cyber Claims Report,” Coalition said claims severity involving business email compromise (BEC) increased 23% in 2024, with an average claims cost of $35,000.
Nearly 30% of BEC claims involved funds transfer fraud (FTF). These claims had an average initial loss amount of $185,000, but Coalition said it—working with authorities and other partners—were able to claw back $31 million for policyholders. About a quarter of claims had at least a partial recovery. Coalition said policyholders that quickly report FTF events have a greater likelihood of recovery.
BEC claims severity in the US was higher ($36,000) than the global average. There average for both Canada and the UK were $22,000.
“The spike in BEC severity was, in part, driven by increased prices related to legal expenses, incident response firms, data mining, notifications, and other mitigation and recovery efforts,” said Coalition in the report.
Overall, Coalition said cyber claims frequency decreased by 7% but claims severity was stable. Claims involving ransomware decreased by 3% in 2024, and severity decreased by 7%. Ransom demands decreased 22% year-over-year. Coalition said it negotiated an average 60% reduction in ransomware payments in 2024. About 44% of policyholders that experienced a ransomware incident opted to pay the ransom
Though the ransom is a big cost driver of claims other aspects have a significant effect, such as business interruption, digital asset restoration, and forensic investigation.
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