Fifth Annual Study on Cyber Claim Costs Released
NetDiligence® Publishes 2015 Study of Actual Claim Payouts
PHILADELPHIA, Sept. 30, 2015 /PRNewswire/ -- NetDiligence®, a leading cyber risk assessment and data breach services company, announced today it has published its fifth annual Cyber Claims Study, a study of actual losses for data breach events covered by various leading cyber liability insurance carriers.
This year's report summarizes NetDiligence's findings for a sampling of 160 cyber liability insurance claims, 155 of which involved the exposure of sensitive data. The study examines the type of data exposed, the cause of loss, the business sector in which the incident occurred and the size of the affected organization. The study also considers claims due to third-party breaches and claims due to insider involvement, both accidental and malicious.
The primary focus of the study is the costs incurred by underwriters due to cyber claim events, including Crisis Services (forensics, notification, credit/ID monitoring and legal counsel/Breach Coach®), Legal (class action lawsuit defense and settlement), Regulatory (defense and settlement) and PCI (fines).
This year's study finds the average total claim for a breach was $673,767, with an average payout for Crisis Services of $499,710. However, the average claim for a large company was $4.8 million, while the average claim in the Healthcare sector was $1.3 million.
"As an independent and trusted partner to the cyber liability insurance industry, NetDiligence is uniquely positioned to combine data from multiple insurers so that the pool of claims is large enough to ascertain real costs, project future trends and better educate concerned Risk Managers and CFOs," said Mark Greisiger, president of NetDiligence. "We are honored that our cyber liability insurance carrier and broker partners share a sampling of their loss data with NetDiligence. Without them, the valuable insights this educational study provides would not be possible."
Sponsoring this year's NetDiligence Cyber Claims Study are AllClear ID, McGladrey (soon to be RSM, effective October 26, 2015), Cipriani & Werner, P.C., and Symantec.
The NetDiligence® 2015 Cyber Claims Study is now available for download at the NetDiligence website (www.netdiligence.com). eRiskHub® licensors and their clients have exclusive access to an expanded version of the study in the Learning Center of the eRiskHub. The eRiskHub (www.eriskhub.com) is a web-based cyber risk management portal that helps organizations prevent and recover from data breaches.
Media Contact:
Mark Greisiger
President, NetDiligence®
610.525.6383
Email
About NetDiligence®
NetDiligence® is a privately-held cyber risk assessment and data breach services company. Since 2001, NetDiligence has conducted thousands of enterprise-level cyber risk assessments for a broad variety of organizations, including public entities, financial services, retailers, software developers, medical providers and universities. NetDiligence services are used by leading cyber liability insurers in the U.S. and U.K. to support both loss-control and education objectives. NetDiligence hosts a semiannual Cyber Liability Conference attended by risk managers, privacy attorneys and cyber liability insurance leaders from around the world. NetDiligence is also an acknowledged leader in data and privacy breach prevention and recovery. Its eRiskHub® portal (www.eriskhub.com) is licensed by cyber liability insurers to provide education and breach recovery services to their policyholders. For more information, visit www.netdiligence.com.
SOURCE NetDiligence
Share this article