Cyber Risk Assessment & Data Breach company, NetDilligence just released its 2015 Cyber Claims Study, and it is quite enlightening.
The study examined recent cyber claims from 19 North American insurance companies and explores the cause and size of the claim, the outcome, and the amount of settlement.
Among the Study’s findings:
- 54% of the breaches occurred at small and medium size companies
- The size of company had no relation to the size of the breach or the claim
- There was insider involvement in 32% of the claims
- The average cost per record affected was $964.31 (median cost was $13)
- The average cost for legal defense was $434,354 (median cost was $76,000)
- The average cost for legal settlement was $880,839 (median cost was $50,000)
The median costs are significantly lower, because a number of claims are still open, with only certain expenses being reported to date.
The report is a fascinating overview of the type of breaches occurring and the costs that insurance companies are experiencing. I encourage you to see for yourself the toll that cyber crime is taking on NA companies of all types and sizes.