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Rising Cybercrime Losses and Insurance Gaps Highlight Cybersecurity Challenges

Rising Cybercrime Losses and Insurance Gaps Highlight Cybersecurity Challenges

First seen 15 Oct 2026, 15:39 UTC • •
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ThreatCluster AI
ThreatCluster •October 15, 2026 at 16:37 UTC
  • •U.S. cybercrime losses rose to nearly $21 billion in 2025.
  • •Only 10-20% of small and midsize businesses have cyber insurance coverage.
  • •Korea's cyberinsurance market is valued at just $3 million, highlighting significant gaps.

In 2025, U.S. cybercrime losses reached nearly $21 billion, up from $16 billion in 2024, with over 1 million reported cyber incidents. The Insurance Information Institute (Triple-I) noted that average cyber claim severity for large businesses more than doubled to over $4.4 million, despite a 34% decline in claim frequency. Ransomware was involved in 48% of breaches, yet 69% of victims opted not to pay ransoms. In Korea, the cyberinsurance market remains small, valued at just $3 million in 2023, leaving many businesses vulnerable. Awareness of cyberinsurance is low, with only 16.1% of surveyed companies aware of it. The global cyberinsurance market is projected to grow significantly, reaching $29 billion by 2027. AI-related threats are increasing, with the FBI reporting nearly $893 million in AI-related incident losses in 2025.

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Timeline

2023-01-01
Korea's cyberinsurance market valued
Korea's cyberinsurance market was valued at just $3 million in 2023, significantly smaller than other major economies.
Koreajoongangdaily
2025-01-01
U.S. cybercrime losses reported
Cybercrime losses in the U.S. reached nearly $21 billion in 2025, up from $16 billion in 2024.
Programbusiness
2025-01-01
Over 1 million cyber incidents reported
The Insurance Information Institute reported more than 1 million cyber incidents in 2025, a significant increase from 859,532 in 2024.
Programbusiness

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Common questions

What are the main causes of rising cybercrime losses?
The increase in cybercrime losses is attributed to the rise in ransomware attacks and AI-driven threats.
How can businesses improve their cyber insurance coverage?
Businesses should educate themselves on available cyber insurance options and consider investing in coverage, especially small and midsize companies.
What is the current state of the cyber insurance market in Korea?
Korea's cyberinsurance market is very small, valued at just $3 million, with low awareness and uptake among businesses.