Outlook for Cybersecurity Insurance and Public Transit in 2024

The last few years have brought a significant increase in the number and scale of cybersecurity attacks against companies of all sizes, including public transit agencies. January 2024 had a record number of attacks—the second highest number of attacks for a month ever and 130 percent more than last January.

The latest Mineta Transportation Institute (MTI) perspective, Is There a Light at the End of the Tunnel? The Outlook for Cybersecurity Insurance and Transit in 2024, examines the changes in the cyber risk landscape, the responses of the insurance market and public agencies to these changes, and provides recommendations for how the different segments of the market can continue to help manage the risk of catastrophic loss.

The perspective posits that:

• Cybersecurity attacks and threats to U.S. critical infrastructure are a major concern as they can have significant economic, national security, and public safety implications.
• The global transit industry has experienced a 186 percent year-over-year increase in weekly ransomware attacks since June 2020. In North America, attacks have occurred on transit agencies in California, Colorado, Kansas, New York, Texas, Washington, and multiple cities in Canada just in the past few years.
• Along with the growth in cyberattacks, there has been a corresponding rise of cyber insurance claims, and cybersecurity insurance underwriting practices are adapting. These changes also increase costs to cover lost business, detection and escalation, post-breach response, and notification expenses.