Top 4 cybersecurity events of 2024 and what they mean for cyber insurance in 2025

As 2024 draws to a close, the cyber landscape remains as volatile as ever. This year, we've witnessed a series of high-profile incidents that have reshaped the threat environment and underscored the need for more robust cyber risk mitigation strategies. For cyber insurance professionals, these events highlight emerging risks, evolving threats, and the need for advanced risk management frameworks. Let’s take a look at the top cybersecurity events of 2024 and what they signal for the future of cyber insurance, especially as we look ahead to 2025.

1. CrowdStrike outage: A wake-up call for cyber resilience

One of the most significant events in 2024 was the CrowdStrike outage, resulting in a global disruption that affected thousands of organizations, particularly in the financial, healthcare, and technology sectors. The incident highlighted the cascading risks in today's interconnected ecosystem—where a single vulnerability in a third-party provider can have far-reaching impacts across supply chains and digital infrastructures.

For cyber insurers, this event emphasizes the importance of robust third-party risk management. The CrowdStrike incident highlights the need for insurers to refine their models and develop more dynamic approaches to assess exposure stemming from service providers, especially in cloud-based environments. Going forward, insurers will likely require more comprehensive contracts with clients that clearly define third-party risk management expectations and provide coverage for such interdependent vulnerabilities.

2. Rise of ransomware: A $30 billion industry

In 2024, ransomware attacks continued to escalate in both frequency and severity. What was once a threat primarily aimed at smaller businesses and local governments has evolved into a massive, multibillion-dollar criminal industry. One of the most high-profile ransomware incidents this year targeted a global logistics giant, crippling supply chains and costing the company tens of millions in ransom payments, business disruption, and recovery expenses.

The growing sophistication of ransomware attacks has introduced new challenges for cyber insurers. Attackers now employ more advanced techniques, such as double extortion (encrypting and threatening to leak sensitive data), making ransomware events even more complex and expensive to manage.

For insurers, this means a growing need for specialized ransomware coverage that addresses not only the cost of ransom payments but also the recovery of data, loss of business income, and reputational damage. With ransomware attacks becoming a permanent fixture in the cyber threat landscape, cyber insurance policies will need to evolve to accommodate the increasing scale and complexity of these attacks. Underwriters will also need to continuously update their risk models to incorporate real-time data and intelligence on ransomware trends, ensuring that policies accurately reflect the growing risk exposure.

3. Chrome extension breach: The security risks of everyday tools

In another shocking development this year, a major breach targeted Chrome browser extensions. Hackers hijacked several popular extensions, including those with millions of users, and inserted malicious code that could steal sensitive data, including login credentials, browsing history, and personal information.

The breach was particularly concerning because of how easily these trusted tools had been compromised. Chrome extensions, which users typically regard as benign and necessary, are a prime target for attackers due to their ability to access extensive user data. While browser vendors like Google have taken steps to address security flaws, this incident revealed how everyday applications could be leveraged to launch large-scale cyberattacks.

For cyber insurers, the Chrome extension breach serves as a stark reminder of the risks embedded in widely used, seemingly innocuous software. As organizations continue to adopt cloud-based productivity tools, collaboration platforms, and browser extensions, the threat of exploitation through these third-party apps will continue to grow. Insurers will need to refine their risk models to account for vulnerabilities within the everyday applications that users rely on. Additionally, policies may need to be tailored to cover specific risks associated with software and plugin vulnerabilities, particularly for businesses that operate in high-risk sectors like finance and healthcare.

4. Zero-day vulnerabilities: A surge in exploits

One of the most concerning trends in 2024 has been the rise in zero-day vulnerabilities—exploits that take advantage of software or hardware flaws that vendors haven’t yet patched. These vulnerabilities, which are often highly targeted and difficult to defend against, have been found in a range of widely-used software and cloud platforms. A notable example this year was a zero-day exploit that targeted a popular cloud-based collaboration tool, allowing attackers to bypass authentication protocols and steal sensitive corporate data.

The increased prevalence of zero-day vulnerabilities presents a significant challenge for cyber insurers. These vulnerabilities can have catastrophic consequences, particularly for organizations that rely on complex tech stacks. The unpredictable nature of zero-day exploits makes it difficult for insurers to assess exposure accurately, leading to increased uncertainty in underwriting and risk modeling.

For insurers, zero-day risks highlight the importance of adopting a more proactive and data-driven approach to underwriting. Real-time monitoring, threat intelligence, and advanced risk analytics will be crucial for effectively pricing cyber insurance policies that take into account emerging vulnerabilities. Collaboration with vendors to ensure timely patches and security fixes will also become an increasingly important part of the risk management strategy for both insurers and insureds.

Looking toward 2025: What’s next for cyber insurance?

As we look ahead to 2025, the rise in zero-day vulnerabilities, ransomware attacks, and supply chain risks will continue to pose significant risks for cyber insurers, particularly in industries heavily reliant on common software and technology platforms. The increasing frequency and sophistication of these threats underscore the urgent need for real-time data and advanced modeling to assess and manage risk accumulation. Now more than ever, underwriters must evolve their cyber risk management strategies while fostering strong, adaptive collaboration with reinsurers and the insurance-linked securities markets to effectively mitigate potential losses and safeguard their portfolios.

Moreover, with the growing complexity of cyber threats—such as ransomware, supply chain vulnerabilities, and zero-day exploits—insurance professionals must take a more proactive approach. This includes leveraging emerging technologies, such as artificial intelligence and machine learning, to develop real-time risk assessments and response strategies. Cyber insurers will also need to increasingly integrate with broader risk management frameworks within organizations to ensure that mitigation efforts are continuously evolving alongside the changing threat landscape.

Finally, as insurers adopt more dynamic models, collaboration with stakeholders—including cybersecurity firms, technology vendors, and governmental agencies—will be key in creating a more resilient cybersecurity ecosystem. Insurers who remain agile, forward-thinking, and committed to leveraging cutting-edge technologies will be best positioned to navigate the evolving risk landscape and continue to provide value to their clients in 2025 and beyond.

The cyber risk environment is shifting, and as insurers, we must shift with it. By embracing new tools, models, and collaborative strategies, we can build more resilient portfolios that are prepared for the challenges of the future.