Business UpdateJun 16, 2026, 04:01 AM
Willis Towers Watson Report: 95% of Cyber Losses Covered by Insurance
AI Summary
Willis, a Willis Towers Watson business, released its "Cyber claims in Focus" report, analyzing 5,500 cyber claims and $1 billion in insurer payments from 2013-2026. The report found that over 95% of average data breach losses and 90% of first-party losses are adequately covered by insurance. It highlighted ransomware as having the highest financial severity, with an average event lasting 25 days and costing $5.3 million, and noted the increasing role of third-party vendors in losses. The report also identified pixel-tracking litigation as a hidden cyber insurance risk.
Key Highlights
- Over 95% of average data breach losses are adequately covered by insurance.
- Over 90% of average first-party losses are adequately covered by insurance.
- Average ransomware event lasts 25 days with an average loss of $5.3 million.
- Largest single ransomware loss now exceeds $500 million.
- Average ransom demands are $3.8 million, with actual payments averaging $1.5 million.
- Third parties are responsible for nearly 50% of data breach losses and 29% of first-party losses.
- Direct attacks account for 95% of total ransomware costs.
Price Impact
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