New data privacy trends help drive growth in frequency and severity of large cyber claims: Allianz

In the first half of 2024, large cyber insurance claims rose by 14% in frequency and 17% in severity, driven mainly by data and privacy breaches, which account for two-thirds of these losses.

The U.S. has seen a surge in class action litigation related to privacy violations, further increasing costs.

AI's growing role in both cyber-attacks and defense is shaping the landscape, while weak cybersecurity and supply chain vulnerabilities remain major risks.

Insurers, like Allianz, stress the importance of strong cyber hygiene, early detection, and the role of AI in mitigating data breaches and reducing claim costs.