2016 Cyber Claims Study
The annual NetDiligence® Cyber Claims Study uses actual cyber liability insurance reported claims to illuminate the real costs of incidents from an insurer’s perspective.
Our objective for this study is to help risk management professionals and insurance underwriters understand the true impact of data insecurity by consolidating claims data from multiple insurers so that the combined pool of claims is large enough that it allows us to ascertain real costs and project future trends.
While many leading cyber liability insurers participate in the study every year, there are many insurers that have not yet processed enough cyber claims to be able to participate. So our annual study remains a work in progress, while still producing some interesting results.
It is our sincerest hope that each year more and more insurers and brokers will participate in this study—that they share more claims and more information about each claim—until it truly represents the cyber liability insurance industry overall.
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- The majority of claims submitted for this study are for smaller (Main Street) organizations and our findings best represent that group .
- Many insurers are leveraging legal counsel (Breach Coach®) early in the claims process to minimize mistakes on the part of the affected organization .This tends to prevent or minimize follow-on regulatory fines, legal defense and settlement costs .
- Insurers are putting in place ‘preferred vendor panels’ with pre-negotiated rates for Crisis Services costs, which we believe significantly reduces the cost of breach response for policyholders of those insurance carriers . We estimate data breach response costs for an uninsured organization could be up to 30% higher than costs for an insured organization .