NetDiligence®, a leading provider of cyber risk readiness and response services, announced today it has published its twelfth 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, Experian, Guidewire, and The Beckage Firm.
This year’s report features analysis of almost 7,500 claims from events that occurred during 2017–2021, including over 1,000 claims analyzed from incidents that occurred in 2021. 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 $88M, while the average revenue for large companies was $13.5B.
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 5-year average ransom climbed to $262K; the 5-year average cost of a ransomware incident rose to $455K. The average incident cost for large companies (across all types of incidents) was $12.8M.
“For the third year in a row, ransomware is the leading cause of loss for SMEs,” said Mark Greisiger, President of NetDiligence. “Furthermore, the overall business interruption cost of a ransomware incident has significantly grown over that time period. The average costs for a ransomware incident in 2021 were almost double the 5-year average costs.”
“It is a crucial time for SMEs to protect themselves by implementing preventative measures such as multi-factor authentication (MFA) and Endpoint Detection and Response (EDR),” Greisiger adds. “Equally important, we have learned from the cyber insurance community that all sectors must be vigilant about putting an actionable incident response plan in place with hotlines to the insurance carriers’ preferred Breach Coach® and other incident response experts. Ransomware, along with business email compromise (BEC), will likely remain the primary cyber threats. However, we have seen first-hand that when organizations have the tools and planning in place to respond quickly and efficiently, they can minimize both the cost and the disruption to their businesses.”
Study findings will be presented at the NetDiligence Cyber Risk Summit in Santa Monica, California on Tuesday, October 11, 2022. More in-depth coverage of findings, along with front-line insights from sponsors, can be found inside your cyber insurer’s eRiskHub portal.
Study findings as well as the state of the cyber insurance market will be discussed further in two upcoming webinars from NetDiligence. Those interested in attending can register for the webinars using the links below:
- Webinar 1: Cyber Claims Study 2022: A Review of Findings and Front-Line Insights
- Date: October 27, 2022 at 11:00am EST
- Click here to register
- Webinar 2: Cyber Claims Study 2022: State of the Market
- Date: November 10, 2022 at 11:00am EST
- Click here to register
Click here to download the 2022 Cyber Claims Study from NetDiligence.
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