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 has 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 necessity of advanced risk management frameworks. Here are the top cybersecurity events of 2024 and what they signify for the future of cyber insurance 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, which led to global disruption affecting thousands of organisations, particularly across the financial, healthcare, and technology sectors. This incident exposed the cascading risks within today’s interconnected ecosystem — where a single vulnerability in a third-party provider can have widespread effects across supply chains and digital infrastructures.

For cyber insurers, this event reinforces the critical importance of robust third-party risk management. The CrowdStrike incident highlighted the need for insurers to refine their models and develop more dynamic approaches to assess exposure linked to service providers, especially within cloud-based environments. Moving forward, insurers will likely require more comprehensive contracts with clients that clearly define third-party risk management responsibilities and provide coverage for interdependent vulnerabilities.

2. Rise of ransomware: A $30 billion industry

Ransomware attacks escalated significantly in 2024, both in frequency and severity. What was once a threat largely targeting small businesses and local governments has evolved into a vast, multibillion-dollar criminal enterprise. One of the most high-profile ransomware incidents this year affected a global logistics giant, crippling supply chains and costing the company tens of millions in ransom payments, business disruption, and recovery expenses.

The increasing sophistication of ransomware attacks presents new challenges for cyber insurers. Criminals are now employing advanced techniques such as double extortion — where they encrypt data and simultaneously threaten to leak sensitive information — making ransomware events even more complex and expensive to resolve.

This evolution necessitates specialised ransomware coverage that extends beyond ransom payments to include data recovery, business income losses, and reputational damage. As ransomware attacks become a permanent fixture of the cyber threat landscape, cyber insurance policies will need to adapt to cover the growing scale and complexity of these incidents. Underwriters will also need to update their risk models continually, incorporating real-time data and intelligence on ransomware trends to ensure policies reflect the increasing risk exposure accurately.

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

A particularly concerning development in 2024 was a major breach targeting Chrome browser extensions. Hackers compromised several popular extensions — some with millions of users — inserting malicious code capable of stealing sensitive data, including login credentials, browsing history, and personal information.

This breach was particularly alarming due to how effortlessly these trusted tools were compromised. Chrome extensions, typically regarded as safe and essential, have become prime targets due to their extensive access to user data. While browser vendors such as Google have taken steps to patch vulnerabilities, this incident demonstrated how everyday applications can be exploited to launch large-scale cyberattacks.

For cyber insurers, this breach serves as a stark reminder of the inherent risks within widely used, seemingly innocuous software. As organisations continue adopting cloud-based productivity tools, collaboration platforms, and browser extensions, the threat of exploitation through third-party apps will only grow. Insurers will need to refine their risk models to account for vulnerabilities in these everyday applications. Additionally, policies may need to be tailored to cover specific software-related risks, particularly for sectors such as finance and healthcare that face heightened exposure.

4. Zero-day vulnerabilities: A surge in exploits

One of the most concerning trends in 2024 has been the increase in zero-day vulnerabilities — exploits that target software or hardware flaws that vendors have not yet patched. These vulnerabilities, often highly targeted and difficult to defend against, have been discovered in widely used software and cloud platforms. A particularly notable example involved a zero-day exploit targeting a popular cloud-based collaboration tool, enabling attackers to bypass authentication protocols and steal sensitive corporate data.

The growing prevalence of zero-day vulnerabilities poses significant challenges for cyber insurers. These vulnerabilities can have catastrophic consequences, particularly for organisations reliant on complex technology stacks. Their unpredictable nature makes accurate exposure assessment difficult, increasing uncertainty in underwriting and risk modelling.

To mitigate these risks, insurers must adopt more proactive, data-driven underwriting approaches. Real-time monitoring, threat intelligence, and advanced risk analytics will be vital for pricing cyber insurance policies that adequately account for emerging vulnerabilities. Collaboration with vendors to ensure timely patching and security fixes will also become a key component of risk management strategies for both insurers and policyholders.

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

s we approach 2025, the continued rise of zero-day vulnerabilities, ransomware attacks, and supply chain risks will remain significant challenges for cyber insurers, particularly within industries heavily reliant on common software and technology platforms. The increasing frequency and sophistication of these threats highlight the urgent need for real-time data and advanced modelling techniques to assess and manage risk accumulation effectively.

In this evolving landscape, underwriters must adopt more proactive risk management strategies while fostering stronger collaboration with reinsurers and insurance-linked securities markets to effectively mitigate potential losses and safeguard their portfolios.

Moreover, with cyber threats growing in complexity — including ransomware, supply chain vulnerabilities, and zero-day exploits — insurance professionals must embrace a more proactive approach. This involves leveraging emerging technologies such as artificial intelligence and machine learning to develop real-time risk assessments and response strategies. Additionally, integrating cyber insurance more closely with broader organisational risk management frameworks will be essential to ensure mitigation efforts evolve alongside the shifting threat landscape.

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

The cyber risk environment is shifting — and insurers must evolve with it. By embracing new tools, dynamic models, and collaborative strategies, insurers can build more resilient portfolios equipped to meet the challenges of tomorrow.