This article was sponsored by Travelers
It has never been more important for businesses to protect themselves against cyber threats. While the soft market for cyber insurance has continued to drive rates lower, cyber risks have evolved rapidly. In 2024, security services took down a number of ransomware groups, which dispersed attackers across numerous smaller groups. Now, these groups have reorganized and once again are focusing on critical and high-threat software vulnerabilities.
The proliferation of artificial intelligence in recent years has added a new wrinkle to cyber security. As fast as AI has entered our lives to assist with daily tasks, it has also helped cyber threat actors conduct their activities faster and more efficiently. The Travelers cyber team has been monitoring AI-supported attacks for some time, along with other swiftly changing threats.
“Last year we saw more AI-driven cyber attacks, business email compromise and phishing attempts. There were increased payments across the board – though the number of victims listed on ransomware leak sites suggests that many are still refusing to pay the ransom,” said James Doswell (pictured), senior risk management consultant for Cyber at Travelers. The construction sector remained a primary target in 2024, with 129 attacks recorded in Q4 alone, and a 56% increase in attacks year-over-year. Hospitals and healthcare organizations also faced persistent threats, with attacks rising from 166 in 2023 to 210 in 2024. Other notable targets included law practices and financial services, underscoring the broad spectrum of industries vulnerable to ransomware activity. (Source: Travelers Q4 2024 Cyber Threat Report)
Travelers is preparing for ongoing changes to the cyber security risk landscape this year, particularly as AI increases the sophistication of cyber threats. Doswell said AI’s cyber risks vary widely, with attackers using the technology to create deep-fake video and images, drive fraud, discover “zero-day” threats, or combine chains of lower-risk threats. AI is also giving attack targets a much smaller window during which to patch their vulnerabilities.
“Eventually, companies won’t have the chance to patch before attackers use their vulnerabilities against them,” he said. “Or, a patch simply won’t exist.”
The cyber threat landscape calls for layered, multifaceted protections that discourage attackers – and allow businesses to recover quickly if they should be a target.
To support clients in strengthening their cybersecurity, Travelers offers a proactive and free post-bind cyber risk consultancy to help insureds review and improve their cyber risk. Utilising a wealth of cyber risk and security experience across multiple architectures and industries, clients are provided with insights into the latest cyber threats and attack methods being used. Beyond that, the cyber team can zero in on potential attack targets and recommend protective solutions that address vulnerabilities within a business.
Unfortunately, even the best cyber protection isn’t bulletproof. The true value of a cyber insurance policy is in the expertise it offers during and after a cyber attack. Travelers provides real-time, round-the-clock claims support to clients who have experienced such an event. Travelers’ claims support helps contain the threat quickly and enables the business to resume operations as promptly as possible.
“We have a range of specialist partners to assist in rapid response, investigation and mitigation,” Doswell said. “Our cyber claims hotline allows rapid incident response and assistance with getting businesses back up and running, as well as assistance in dealing with the attackers when necessary.”
At a time when businesses of all sizes and sectors are potential targets for cyber crime – and criminals have new tools at their disposal – companies should continuously reinforce their protection. Fortunately, they can get support from insurers who are developing their knowledge and strategies to help clients improve their cyber security.
“The threat landscape is constantly evolving, so our team is continuously tracking cyber security trends, updating their knowledge and skills, and collaborating with industry experts to stay current,” Doswell said. “We’re also investing in advanced technology and tools for risk assessment and mitigation. Our goal is to help our clients stay a step ahead of the cyber threats they face.”
This information is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information.
Travelers operates through several underwriting entities in the UK and Europe. Please consult your policy documentation or visit the websites below for full information.
