{"id":24809,"date":"2026-03-06T16:01:30","date_gmt":"2026-03-06T16:01:30","guid":{"rendered":"https:\/\/insurance-canada.ca\/?p=85044"},"modified":"2026-03-06T16:01:30","modified_gmt":"2026-03-06T16:01:30","slug":"coalitions-2026-cyber-claims-report-finds-initial-ransom-demands-surged-47-but-most-businesses-refuse-to-pay","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2026\/03\/06\/coalitions-2026-cyber-claims-report-finds-initial-ransom-demands-surged-47-but-most-businesses-refuse-to-pay\/","title":{"rendered":"Coalition\u2019s 2026 Cyber Claims Report Finds Initial Ransom Demands Surged 47% \u2014 But Most Businesses Refuse to Pay"},"content":{"rendered":"

Business email compromise and funds transfer fraud still comprise the majority of cyber insurance claims, data shows<\/strong><\/h3>\n

Vancouver, BC (Mar. 5, 2026) \u2014 Coalition, the world\u2019s first Active Insurance provider designed to help prevent digital risk before it strikes, has released the findings of its 2026 Cyber Claims Report<\/strong>, revealing that initial ransom demands in the full-year 2025 surged 47%<\/strong> year-over-year (YoY). However, while ransomware actors substantially increased their demands, a record 86%<\/strong> of businesses refused to pay, suggesting that organisations have improved their cyber resiliency with viable data backups and incident response plans.<\/p>\n

\u201cThe data suggests a turning point in the economics of ransomware<\/strong>: while threat actors escalate their demands to push for higher, seven-figure payouts, cyber insurer support is helping businesses limit losses and is starting to help tip the scales back in favor of defenders,\u201d said Rob Jones, Coalition\u2019s Global Head of Claims. \u201cUltimately, we\u2019re seeing the continuous partnership that Active Insurance offers between Coalition and our policyholders is reshaping the loss profile of cyber insurance and creating better outcomes.\u201d<\/p>\n

While ransomware was the most costly type of claim in 2025 with an average loss of USD $269,000, business email compromise (BEC) and funds transfer fraud (FTF) still accounted for the majority (58%) of cyber incidents<\/strong> that Coalition observed. Further, among all 2025 FTF claims, 52% originated from BEC, indicating that BEC is a catalyst for FTF, but not a prerequisite, and businesses must adequately prepare to defend against both email-enabled and email-independent pathways to financial fraud.<\/p>\n

\u201cUnderstandably, ransomware generates headlines, and while we\u2019re encouraged to see more organisations willing to walk away from extortion demands, our claims data shows that old-fashioned email-based crime hasn\u2019t gone anywhere,\u201d continued Jones. \u201cBEC and FTF are still powered by social engineering, which targets the individual, and those attacks can be just as damaging to businesses.\u201d<\/p>\n

Additional key takeaways from the report include:<\/p>\n