Willis Towers Watson Finds Cyber Insurance Covers Over 95% of Breach Losses
WTW•WTW reports its cyber insurance covers over 95% of average data breach losses and 90% of first-party losses based on analysis of 5,500 claims since 2013 totaling $1 billion in payments across 95 countries. Ransomware events average 25 days and $5.3 million in losses, with average ransom demands of $3.8 million and payments of $1.5 million.
1. Key Coverage Metrics
WTW finds its cyber insurance portfolio covers more than 95% of average data breach losses and 90% of average first-party losses, based on analysis of 5,500 claims from January 2013 through January 2026 across 95 countries and nearly $1 billion in insurer payments.
2. Ransomware Severity and Economics
Ransomware remains the costliest cyber threat, averaging 25 days of disruption and $5.3 million in losses per event; average ransom demands reached $3.8 million with payments of $1.5 million, while direct attacks drive 95% of total costs compared with 5% from vendor-led incidents.
3. Emerging Risk Factors
WTW highlights third parties as the source of nearly half of data breach losses and 29% of first-party losses, warns of systemic risk from single-vendor failures, notes artificial intelligence is amplifying threats like deepfake phishing, and flags pixel-tracking litigation as a growing hidden risk in cyber insurance.
