Ransomware, Fraud, and Lawsuits Propel Cyber Insurance Claims to Record Highs in 2026

# Ransomware, Fraud, and Lawsuits Propel Cyber Insurance Claims to Record Highs in 2026

What happened

The 2026 InsurSec Report by At-Bay, analyzing over 100,000 policy years of cyber insurance claims, has documented a significant surge in both the frequency and severity of claims. Overall claim frequency rose by 7% year-over-year, while the average claim severity reached an unprecedented $221,000. Ransomware attacks remain the dominant driver of these costs, with average ransomware-related claim severity soaring to $508,000—a 16% increase from 2025—making ransomware the costliest incident type by a wide margin.

Remote access vulnerabilities have emerged as the primary attack vector, accounting for 87% of ransomware claims in 2025. This trend highlights the growing exploitation of poorly secured remote access services, such as VPNs, Remote Desktop Protocol (RDP), and other remote management tools, by threat actors.

In addition to ransomware, fraud schemes and litigation related to data breaches and cyber incidents have contributed heavily to the rising claims, further straining the cyber insurance ecosystem.

Confirmed facts

• The InsurSec Report 2026 covers claims data spanning more than 100,000 policy years.
• Overall cyber insurance claim frequency increased by 7% compared to the previous year.
• Average claim severity reached $221,000, the highest recorded to date.
• Ransomware claims averaged $508,000 in severity, up 16% from 2025.
• Remote access services were the entry point in 87% of ransomware claims.
• Fraud and lawsuits related to cyber incidents have significantly driven up claim volumes and costs.

Who is affected

Organizations across all industries are impacted by these trends, but certain sectors face heightened risks:

• Healthcare and Financial Services: Due to sensitive data and regulatory scrutiny, these sectors often experience costly ransomware attacks and subsequent lawsuits.
• Small and Medium Enterprises (SMEs): SMEs frequently lack robust cybersecurity defenses, making them prime targets for ransomware and fraud.
• Remote-First and Hybrid Work Environments: Increased reliance on remote access technologies has expanded the attack surface.
• Cyber Insurance Providers: Rising claims severity and frequency strain underwriting models and may lead to increased premiums or reduced coverage availability.

What to do now

• Review and Strengthen Cyber Insurance Coverage: Evaluate current policies for coverage limits, exclusions, and incident response support.
• Conduct Remote Access Audits: Identify and remediate vulnerabilities in VPNs, RDP, and other remote access tools.
• Implement Multi-Factor Authentication (MFA): Enforce MFA on all remote access points to reduce unauthorized entry risks.
• Enhance Incident Response Plans: Prepare for ransomware and fraud incidents with clear, tested procedures.
• Engage Legal Counsel Early: In the event of a breach, early legal advice can mitigate lawsuit risks and regulatory penalties.

How to secure yourself

• Harden Remote Access Infrastructure: Disable unused remote services, apply patches promptly, and restrict access using network segmentation.
• Deploy Endpoint Detection and Response (EDR): Use advanced monitoring tools to detect and respond to suspicious activity.
• Train Employees on Phishing and Social Engineering: Since fraud often begins with credential compromise, awareness is critical.
• Regularly Back Up Data: Maintain offline, immutable backups to enable recovery without paying ransom.
• Monitor Cyber Insurance Market Trends: Stay informed about policy changes and emerging coverage gaps.

FAQ

What caused the rise in ransomware claim severity in 2026?

Ransomware claim severity increased due to more targeted attacks exploiting remote access vulnerabilities, higher ransom demands, and greater operational disruption costs.

How do remote access weaknesses contribute to ransomware attacks?

Remote access services like VPNs and RDP, if misconfigured or unpatched, provide attackers with direct entry points into corporate networks, facilitating ransomware deployment.

Are small businesses more vulnerable to these cyber insurance claims?

Yes, SMEs often lack advanced security controls and incident response capabilities, making them frequent ransomware and fraud targets.

What role do lawsuits play in increasing cyber insurance claims?

Lawsuits related to data breaches and inadequate cybersecurity measures increase claim costs by adding legal fees, settlements, and regulatory fines to the overall financial impact.

How can organizations reduce their cyber insurance premiums amid rising claims?

By demonstrating robust cybersecurity practices, including MFA, regular audits, employee training, and incident response readiness, organizations can negotiate better policy terms.

Is ransomware still the most expensive cyber incident type?

Yes, ransomware remains the costliest incident type, with average claim severity exceeding half a million dollars in 2026.

What should organizations prioritize to prevent ransomware attacks?

Securing remote access points, enforcing MFA, maintaining updated systems, and educating employees on phishing threats are critical priorities.

How are cyber insurers responding to the increase in claims?

Insurers are tightening underwriting criteria, increasing premiums, and sometimes reducing coverage for high-risk sectors or insufficiently secured organizations.

Can cyber insurance cover losses from fraud and lawsuits?

Many policies include coverage for fraud-related losses and legal costs, but organizations should verify specific policy terms and limits.

What emerging trends should organizations watch in cyber insurance?

Expect growing emphasis on continuous security monitoring, zero trust architectures, and integration of cyber insurance with broader risk management frameworks.

Why this matters

The surge in cyber insurance claims driven by ransomware, fraud, and lawsuits signals an urgent need for organizations to reassess their cybersecurity defenses and insurance strategies. Remote access vulnerabilities remain a critical weak point exploited by attackers, underscoring the importance of securing these entry points. With claim costs reaching historic highs, businesses face escalating financial risks that can threaten operational viability. Proactive measures can reduce exposure, improve incident response, and optimize insurance coverage, ultimately safeguarding organizational resilience in an increasingly hostile cyber environment.

Sources and corroboration

This article synthesizes findings from the 2026 InsurSec Report by At-Bay, as reported by Help Net Security on April 23, 2026, alongside corroborating industry analyses and cyber insurance market data. The insights reflect aggregated claims data from over 100,000 policy years, providing a comprehensive and authoritative overview of current cyber insurance claim trends.

• [Help Net Security: Ransomware, fraud, and lawsuits drive cyber insurance claims to new peaks](https://www.helpnetsecurity.com/2026/04/23/cyber-insurance-claims-report/)