Reinsurance in the cyber crossfire: insights from Kroll’s latest threat landscape report

Cyber threat landscape intensifies, says Kroll report.

From the rise of ransomware and cloud vulnerabilities to targeted attacks on key industries, cyber risks are not only growing but becoming more sophisticated.

As the cyber threat landscape evolves, reinsurance leaders find themselves navigating increasingly treacherous waters. The Q2 2024 Cyber Threat Landscape Report published by Kroll offers useful insights into the shifting dynamics of cyber risk, and understanding these trends is essential to stay ahead of the curve.

Ransomware: a persistent and evolving threat

Ransomware continues to dominate the threat landscape, with key insights from the Kroll report highlighting its ongoing prominence.

According to the report, in Q2 2024 there was a 2 percent increase in ransomware activity, despite the volatility caused by law enforcement actions against major cybercriminal groups.

The report explains that high-profile groups such as Lockbit and Blackcat remained active, while new variants such as Fog and Medusa were gaining ground, and that the education sector, in particular, was a growing target, with attacks spiking during Q2 and Q3, when IT staffing was generally lower.

For reinsurers, this seasonal vulnerability increases the risk of educational institutions paying ransoms.

“With threat actors very much doing their homework in Q2 2024, organisations across all industries need to as well.”

Cloud environments: a growing attack surface

“Threat actors are zeroing in on cloud services like never before,” the report states, revealing that cloud and SaaS-related incidents, grouped together as “unauthorised access”, rose by 7 percent in Q2 2024.

The report emphasises that the central role of cloud services in business operations makes them a prime target, noting that: “Information stealers continue to be highly beneficial malware to develop infection chains for, enabling threat actors to quickly compromise a user and leverage their access to continue attacks on internal networks and SaaS and cloud environments.”

For reinsurers, cloud risks demand close attention, as these threats can escalate rapidly.

The healthcare sector: a vulnerable target

The report highlights healthcare as a sector facing heightened cyber risks, with a significant jump in cyber incidents compared to previous quarters.

The healthcare industry’s reliance on sensitive personal data makes it an attractive target for cybercriminals, and the consequences of a breach can be significant.

The report calls for “a proactive approach to safeguarding their environments”, in healthcare and other sectors, urging businesses to fortify their defences against these evolving threats.

Professional services: top target

“Professional services stayed at the top spot as the most targeted industry,” the report states. 

Incidents in this sector frequently involve phishing and social engineering tactics which enable attackers to gain initial access, and in some cases, these attacks lead to more severe consequences such as ransomware deployment.

The report advises that organisations in this sector must continue to prioritise “robust security measures and comprehensive threat detection and response capabilities” particularly around email and identity management, to prevent unauthorised access.

Reinsurance implications: a complex cyber risk landscape

The report’s emphasis on targeted attacks in industries such as education, healthcare, and professional services is a reminder that no sector is immune to cyber threats.

Kroll’s report highlights the importance of proactive defence strategies, including investing in cloud security, fortifying defences against ransomware, and improving incident response capabilities.

As the report explains: “With threat actors very much doing their homework in Q2 2024, organisations across all industries need to as well.”

For reinsurance leaders, this means staying informed about emerging threats and adapting their models to reflect the rapidly changing cyber risk landscape.

To read the full report, click here.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.