Cyber incidents by primary cause of loss in 2024

The rise of generative AI is enabling cyber criminals to enhance phishing attacks and deepfake fraud techniques, and to automate and enhance their cyber attack capabilities. AI is increasingly being used in all stages of the cyber kill chain[8], making it easier to bypass traditional security measures and cheaper to mount attacks on networks. It is predicted that 17% of cyber attacks will involve generative AI by 2027[9].

Cyber incidents by primary cause of loss in 2024

The rise of generative AI is enabling cyber criminals to enhance phishing attacks and deepfake fraud techniques, and to automate and enhance their cyber attack capabilities. AI is increasingly being used in all stages of the cyber kill chain[8], making it easier to bypass traditional security measures and cheaper to mount attacks on networks. It is predicted that 17% of cyber attacks will involve generative AI by 2027[9].

Key takeaways

For brokers

1. Cyber resilience is more than cyber insurance cover – businesses need layered cyber security and pre-emptive, responsive and adaptive support to help them pre, during and post a cyber incident, in addition to buying cyber security insurance.

2. First and third party liability – today’s tech interconnectivity creates supplier vulnerabilities resulting in both first and third party liability – ranging from cyber risk and business interruption to D&O claims and loss of reputation.

3. Political tensions increase cyber risk - as geopolitical tensions rise and relationships shift, so too does cyber risk, as nation-state threat actors create new cyber vulnerabilities that cyber criminals can exploit.
For business leaders

1. A growing concern for shareholders - as cyber risk grows so too does the risk of disruption and reputational harm. Poor cyber security decisions now face greater scrutiny, exposing firms to legal, financial, and operational consequences.

2. All eyes on IP risk and data privacy - national IP and data privacy regulations are fragmented and create risks for firms operating internationally who might inadvertently fall foul of new legislation.

3. Harnessing the power of AI - with 37% of global executives planning to invest in new technologies this year, and 66% anticipating AI-induced job losses in the next 18 months – firms need to stay alert to best practice and evolving AI-related risks as they emerge.

Cyber incidents by primary cause of loss

Key takeaways

For brokers

1. Cyber resilience is more than cyber insurance cover – businesses need layered cyber security and pre-emptive, responsive and adaptive support to help them pre, during and post a cyber incident, in addition to buying cyber security insurance.

2. First and third party liability – today’s tech interconnectivity creates supplier vulnerabilities resulting in both first and third party liability – ranging from cyber risk and business interruption to D&O claims and loss of reputation.

3. Political tensions increase cyber risk - as geopolitical tensions rise and relationships shift, so too does cyber risk, as nation-state threat actors create new cyber vulnerabilities that cyber criminals can exploit.
For business leaders

1. A growing concern for shareholders - as cyber risk grows so too does the risk of disruption and reputational harm. Poor cyber security decisions now face greater scrutiny, exposing firms to legal, financial, and operational consequences.

2. All eyes on IP risk and data privacy - national IP and data privacy regulations are fragmented and create risks for firms operating internationally who might inadvertently fall foul of new legislation.

3. Harnessing the power of AI - with 37% of global executives planning to invest in new technologies this year, and 66% anticipating AI-induced job losses in the next 18 months – firms need to stay alert to best practice and evolving AI-related risks as they emerge.

For brokers

1. Cyber resilience is more than cyber insurance cover – businesses need layered cyber security and pre-emptive, responsive and adaptive support to help them pre, during and post a cyber incident, in addition to buying cyber security insurance.

2. First and third party liability – today’s tech interconnectivity creates supplier vulnerabilities resulting in both first and third party liability – ranging from cyber risk and business interruption to D&O claims and loss of reputation.

3. Political tensions increase cyber risk - as geopolitical tensions rise and relationships shift, so too does cyber risk, as nation-state threat actors create new cyber vulnerabilities that cyber criminals can exploit.
For business leaders

1. A growing concern for shareholders - as cyber risk grows so too does the risk of disruption and reputational harm. Poor cyber security decisions now face greater scrutiny, exposing firms to legal, financial, and operational consequences.

2. All eyes on IP risk and data privacy - national IP and data privacy regulations are fragmented and create risks for firms operating internationally who might inadvertently fall foul of new legislation.

3. Harnessing the power of AI - with 37% of global executives planning to invest in new technologies this year, and 66% anticipating AI-induced job losses in the next 18 months – firms need to stay alert to best practice and evolving AI-related risks as they emerge.