Happy Wednesday! In this week’s Big I Buzz: a FEMA leadership shakeup ahead of hurricane season, and a rise in cyber claims tied to business email compromise in 2024.

Acting FEMA Chief Is Ousted After Less Than 4 Months

Less than four months into the role, acting FEMA Administrator Cameron Hamilton has been dismissed, just weeks before the official start of hurricane season. While FEMA has not provided a reason for his removal, the agency confirmed Hamilton’s departure from the position he assumed in late January following his appointment by President Donald Trump.

Stepping into the role is David Richardson, who has been serving as the assistant secretary for the Department of Homeland Security’s Countering Weapons of Mass Destruction Office since January. A former U.S. Marine Corps ground combat officer, Richardson brings a background in national security and crisis response.

Hamilton’s exit came just one day after he testified before a House Appropriations subcommittee, where in prepared remarks he criticized FEMA for becoming “an overextended federal bureaucracy” that has “strayed far from its core mission.” Read more here.

Insurer Coalition: Costs From Business Email Compromise Rise in 2024

Cyber insurer Coalition reported that in 2024, approximately 60% of its cyber insurance claims were related to business email compromise (BEC), with nearly 30% involving funds transfer fraud (FTF). The average cost of BEC claims increased by 23% to $35,000, while FTF incidents had an average initial loss of $185,000. However, Coalition successfully recovered $31 million for policyholders, emphasizing that prompt reporting enhances recovery chances. While overall cyber claim frequency decreased by 7%, the severity remained stable. Notably, ransomware-related claims saw a 3% decrease in frequency and a 7% reduction in severity, with ransom demands dropping by 22% year-over-year. Read more here.

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