Releases Data-Driven Analysis of Cyber Claim Payouts
PHILADELPHIA, Oct. 9, 2019 /PRNewswire/ — NetDiligence®, a leading provider of cyber risk readiness and response services, announced today it has published its ninth annual Cyber Claims Study, a study of actual losses for data breaches and other cyber-related events covered by leading cyber insurance carriers. Sponsoring the study are RSM and Cozen O’Connor.
This year’s report features analysis of 2,081 claims arising from events that occurred during 2014–2018. The data from these claims has been aggregated in over 20 ways, including total, average, and median costs (total breach, crisis services, legal and regulatory, and per-record); the nature of the event (type of data exposed, business sectors affected, revenue size of claimants, causes of loss); and the financial impact of cybercrimes (business interruption, malicious insiders, social engineering, ransomware).
To present more accurate pictures of the business impact of cyber events on smaller versus larger organizations, this year’s report presents findings for small to medium enterprises (SMEs) separately from findings for large companies. For the purposes of this report, SMEs are defined as organizations with less than $2B in annual revenue, while large companies are defined as organizations with $2B or more in annual revenue. Analysis finds that the average cost of a breach for SMEs was $178K, whereas the average cost of a breach for large companies was $5.6M. The average cost of crisis services (forensics, notification, legal guidance, etc.) for SMEs was $112K; for large companies $3.8M. Average legal/regulatory costs for SMEs was $181K; for large companies $2.2M.
“We know this report is eagerly anticipated every year,” said Mark Greisiger, president of NetDiligence, “because it is the only report where claims data from multiple cyber insurers is aggregated and analyzed. We collected 1,100 new claims this year, more than double the number submitted last year. We are honored that our insurance carrier and broker partners continue to share a sampling of their loss data with us. Without them, the valuable insights this study provides would not be possible.”
NetDiligence will host a webinar on November 6, 2019 at 1:00 PM EST to present the report’s findings. Additional insight will be provided by RSM and Cozen O’Conner based on their experience handling cyber incidents.
Interested parties can download the 2019 Cyber Claims Study and register for the webinar by visiting the NetDiligence website (https://netdiligence.com/portfolio/cyber-claims-study/).
NetDiligence® specializes in Cyber Risk Readiness & Response services. With more than 15 years of experience in cyber, NetDiligence is an award-winning provider of innovative cyber risk management software and services to the insurance industry, including QuietAudit® Cyber Risk Assessments, the eRiskHub® cyber risk management portal, and Breach Plan Connect® software-as-a-service (SaaS) to help policyholders with data breach response planning. NetDiligence publishes an annual Cyber Claims Study and hosts annual Cyber Risk Conferences in Philadelphia, Santa Monica, Toronto, London and Bermuda. For more information, visit https://netdiligence.com.
RSM US LLP is the leading provider of audit, tax and consulting services focused on the middle market, with nearly 11,000 people in 87 cities and four locations in Canada. It is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 41,000 people in 116 countries. RSM uses its deep understanding of the needs and aspirations of clients to help them succeed. For more information visit https://rsmus.com/.
About Cozen O’Connor
Cozen O’Connor has a multidisciplinary team of highly skilled and nationally regarded attorneys who focus on all aspects of privacy and data security counseling and litigation. We help companies protect data, comply with regulations, and respond to investigations and litigation. Ranked among the top 100 law firms in the country, Cozen O’Connor has more than 750 attorneys in 27 cities across two continents. A full-service firm with nationally recognized practices in litigation, business law, and government relations, our attorneys have experience operating in all sectors of the economy. Our diverse client list includes global Fortune 500 companies, middle-market firms poised for growth, ambitious startups, and high-profile individuals. https://www.cozen.com