Large loss claims account for 88% of all its global cyber losses, says AXA XL study, revealing key trends and insights

LONDON and NEW YORK, Sept. 9, 2025 /PRNewswire/ -- According to an AXA XL claims analysis, 88% of all incurred losses from its cyber claims over the last decade arise from claims that surpass $1 million, suggesting that a relatively small number of large claims are responsible for the majority of cyber losses.

The report -- Cyber Claims Unveiled: A Focused Study on Trends, Threats, and Tailored Solutions -- provides an in-depth analysis of 300+ cyber claims, revealing trends in incident types, severity, causes of loss, triggered insurance agreements, industry-specific risks, and insights into risk management practices.

According to Fran Gari, Head of Pricing, Global Cyber and the lead author of the report, "This report highlights a vital truth in the cyber risk landscape: a limited number of high-value claims account for the bulk of total losses, emphasizing the value for businesses in effective cybersecurity measures and proactive risk management strategies to provide effective protection and limit potential disruption in today's digital environment. Conducting a thorough examination of claims over an extended period is essential for uncovering evolving trends and patterns in cyber incidents."

"Our claims analysis reveals some very promising trends," said Danielle Roth, Head of Cyber Claims for AXA XL in the Americas. "Shorter shutdown durations, an increasing number of companies successfully detecting breaches independently, and in less time. All of these improvements show that organizations are becoming more resilient and proactive in their cybersecurity efforts."

According to Andrew Farr, AXA XL's Global Chief Underwriting Officer for Financial Lines, "The data tells us a story. By understanding the narratives of our most prominent cyber claims, AXA XL can leverage our own experiences to improve underwriting practices, develop new products, adjust risk pricing strategies, and enhance our risk management solutions, ultimately providing better protection against future cyber risks for our insured clients."

Key findings from the analysis include:

• Rising Severity of Claims: The analysis shows an increasing severity of large claims, particularly related to ransomware incidents.
• Ransomware as a Dominant Threat: Since around 2018, ransomware has emerged as a leading cause of large claims, affecting 54.3% of claims in recent years. This trend emphasizes the need for tailored underwriting and proactive policy design.
• Improvements in Detection: There is a notable shift where a growing proportion of data breach incidents are being identified by insureds themselves rather than external parties. Prior to 2019, only 35.7% of attacks were flagged internally, since then some 66% of incidents were detected by the insured themselves. This suggests that enhanced monitoring capabilities within organizations are having an impact.
• Industry Specific Insights: The report highlights how claims experience and overall impact from cyber incidents varies across industry sectors. For instance, ransomware claims in certain industry sectors, such as manufacturing or retail, have a greater propensity to trigger business interruption compared to others. Larger organizations experience a higher frequency of large claims due to their extensive networks and greater exposure to risks, with both healthcare and financial services experiencing higher relative frequencies of large claims compared to other industries.

The full report is available for download here.

AXA XL offers a range of cyber insurance products and services to help businesses protect themselves against cyber threats. Offerings include coverage for investigating and managing cyber incidents, financial protection against liabilities, and risk management services to strengthen cybersecurity. 

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ABOUT AXA XL
AXA XL provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. We partner with those who move the world forward. To learn more, visit www.axaxl.com 

ABOUT AXA XL INSURANCE
AXA XL Insurance offers property, casualty, professional, financial lines and specialty insurance solutions to mid-sized companies through to large multinationals globally. We partner with those who move the world forward. To learn more, visit www.axaxl.com

SOURCE AXA XL