Releases data-driven analysis of cyber claim payoutsThe eleventh annual Cyber Claims Study from NetDiligence is a study of actual losses for data breaches and other cyber-related events covered by leading cyber insurance carriers. Download the 2021 Cyber Claims Study by visiting the NetDiligence website, here.
PHILADELPHIA, Sept. 22, 2021 /PRNewswire/ — NetDiligence®, a leading provider of cyber risk readiness and response services, announced today it has published its eleventh annual Cyber Claims Study. Sponsoring the study are RSM, Experian® Data Breach Resolution, Guidewire, and Beckage.
This year’s report features analysis of almost 6,000 claims arising from events that occurred during 2016–2020. The data from these claims has been aggregated in over 20 ways, including crisis, legal, business interruption, recovery, and total incident costs; the nature of the event, type of data exposed, business sectors affected, revenue size of claimants, and causes of loss, especially the growing impact of ransomware.
Findings are presented separately for small to medium enterprises (SMEs) and large companies. In this report, the average revenue for SMEs was approximately $84M, while the average revenue for large companies was $11B.
Ransomware: Number Oner Cause Of Loss
In this year’s study, ransomware was once again the number one cause of loss for SMEs and the costs associated with a ransomware event were again higher – the average ransom climbed to $247K; the average cost of a ransomware incident rose to $352K. The average incident cost for large companies (across all types of incidents) was $10.1M.
“The value of cyber insurance cannot be overstated and our studies repeatedly underscore this,” said Mark Greisiger, president of NetDiligence. “With ransomware again the number one cause of loss, we will be watching closely to see whether cyber policyholders, especially SMEs, deploy sufficient cybersecurity safeguards to reduce their ransomware exposure and qualify for ransomware coverage. If not, the challenge will be how we, as an industry, can help them get there.”
A Little Sunlight Through The Storm
“Fortunately, the study also shows some sunlight,” Greisiger added. “For example, the average cost of a hacking incident dropped from $634K to $430K. And within the financial sector, the average incident cost fell from $237K to $112K.”
Study findings will be presented at the NetDiligence Cyber Risk Summit in Santa Monica on Tuesday, October 5, 2022. More in-depth coverage of findings, along with front-line insights from study sponsors, will be presented via webinar later in the year.
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®, a securely hosted solution designed to help senior managers plan and execute their organization’s response to a cyber incident, and which also includes a free mobile app for convenient access and alternative means of communication if company systems are compromised. NetDiligence publishes an annual Cyber Claims Study and traditionally hosts annual Cyber Risk Conferences in Philadelphia, Santa Monica, Toronto, London, and Bermuda. For more information, visit https://netdiligence.com.