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Coalition Report Finds 2025 Cyber Claims Frequency Rose 3% While Average Loss Fell 19%

· Original Report (PDF) ↗

Summary

Coalition’s report analyzes about 1,400 claims with realized financial losses from 100,000+ policyholders. In 2025, claims frequency rose 3% while average severity fell 19%; business email compromise was the most common claim type.

Key points

  • The report uses Coalition policyholder claims reported from January through December 2025, evaluated at six-month maturity.
  • Analysis focused on approximately 1,400 high-signal claims that resulted in financial loss, selected from more than 4,000 reported claims.
  • Global claims frequency rose 3% year over year to 1.54%, while average loss fell 19% to $116,000.
  • Business email compromise represented 31% of claims; its frequency rose 15% and average loss fell 28% to $27,000.
  • Funds transfer fraud accounted for 27% of claims; frequency fell 18% and average loss fell 14% to $141,000.
  • Ransomware frequency was flat at 0.32%, while average loss declined 19% to $262,000.
  • Coalition says its technology-use comparisons are univariate correlations and do not establish causation.

Article Details

Publisher
Coalition
Report Period
2025-01-01 to 2025-12-31
Scope
Proprietary claims data from Coalition policyholders in the United States, Canada, the United Kingdom, Australia, and Germany; analysis focuses on claims resulting in realized financial loss.
Sample Size
Approximately 1,400 high-signal claims with realized financial loss, selected from more than 4,000 claims reported in 2025. The report also describes data from 100,000+ policyholders.
Key Statistics
  • Global claims frequency rose 3% year over year to 1.54% in 2025.
  • Global claims severity fell 19% year over year to an average loss of $116,000 in 2025.
  • Business email compromise accounted for 31% of claims; its frequency rose 15% to 0.47%, while average severity fell 28% to $27,000.
  • Funds transfer fraud accounted for 27% of claims; its frequency fell 18% to 0.42%, while average severity fell 14% to $141,000.
  • Ransomware claims frequency was flat year over year at 0.32%; average severity fell 19% to $262,000.
Recommendations
  • Prioritize collaboration and visibility over fragmented collections of security tools.
  • Use a holistic, active, data-driven approach to defense and prioritize fixes based on financial impact.

Vendors

CoalitionWhile the cyber insurance industry at large struggles with rising loss frequency and severity, Coalition claims data demonstrates the impact of proactive risk management in stabilizing loss trends.

Products

Coalition ControlInc. PrSecurity products include Coalition Control®, Coalition Incident Response (CIR), and Wirespeed Managed Detection & Response. Coalition Security does notCoalition Incident ResponseSecurity products and services are provided by Coalition Incident Response, Inc. (or one of its global affiliates), dba Coalition Security, an affiliate of Coalition,Wirespeed Managed Detection & ResponseInc. PrSecurity products include Coalition Control®, Coalition Incident Response (CIR), and Wirespeed Managed Detection & Response. Coalition Security does not

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