Cyber insurance claims decline while average costs surge

Based on information from Infosecurity Magazine, the cost of cybersecurity insurance claims for large and middle-market companies significantly increased in 2025, even as the overall volume of claims decreased.

Chubb's 2026 Cyber Claims Report indicates that rising claim severity in the US is driven by increased litigation costs related to data breaches and privacy, coupled with higher business interruption expenses. In the US, average claim costs rose 22% for middle-market firms and a substantial 100% for large companies in 2025 compared to the previous year. The UK and Europe saw similar trends, with claim numbers falling but average costs per claim increasing by 34% for middle-market firms and 98% for large firms. However, US claim costs remained higher due to the absence of significant third-party litigation expenses from privacy claims. For SMEs, claim frequency increased in both regions, with average costs falling in the US but rising in the UK and Europe. Growing privacy legislation in the US and EU, including requirements for AI processing and data breach notification, adds complexity. Ransomware tactics of leaking data alongside encryption also escalate litigation risks under data protection laws, with US firms facing substantial administrative fees for individual claim filings.

Source: Infosecurity Magazine