In an unexpected development, a fresh study from UK backup solutions company Databarracks shows that more companies are subscribing to cyber insurance, but the number of claims has dropped. The 2024 Data Health Check points out a big jump in UK companies getting cyber insurance, with 66% now having coverage, up from 51% in 2022 and 57% in 2023.
Even with this rise in coverage, the share of companies making claims has fallen a lot. In 2022, 58% of insured companies filed claims, but by 2024, this number had fallen to 36%. The monetary value of claims has also gone down, with claims over £1m ($1.3m) dropping from 48% in 2022 to 16% in 2024.
The study links this drop in claims to having better resiliency driven by more companies using business continuity plans and stricter cyber insurance rules. Cyber incidents are still a big threat, causing 24% of IT downtime and 46% of data loss in 2024. However, companies are now better ready to handle these problems.
It’s worth pointing out that 82% of companies said they had a business continuity plan in 2024, and 57% confirmed their plan was up to date. This shows a big step up from 2023, when 73% had a plan, and just 49% of those plans were up to date. Also, 75% of companies have put in place air-gapped backup systems, which have been key to getting systems back without paying ransoms.
James Watts, who runs Databarracks, spoke well of the tougher rules to get cyber insurance, saying they’ve pushed businesses to strengthen their defenses. He also suggested that the move towards being better prepared, along with stricter insurance policies, might play a big part in reducing the harm from ransomware attacks.
