NetDiligence Releases Fourteenth Annual Cyber Claims Study
Emerging Trends From Over 10,000 Real Cyber Insurance Claims
PHILADELPHIA, Tuesday, September 17, 2024 – NetDiligence®, a leader in cyber risk readiness and response solutions, is excited to announce the release of its fourteenth annual Cyber Claims Study. This eagerly awaited study offers an in-depth analysis of real-world data breaches and cyber-related loss incidents reported by prominent cyber insurance providers. Sponsoring this year’s study are RSM, Experian, KYND, and Constangy, Brooks, Smith & Prophete, LLP.
This year’s report presents data from over 10,000 cyber insurance claims from incidents occurring from 2019 through 2023. Remarkably, when NetDiligence first published this study in 2010, it analyzed fewer than 100 claims. The study’s rapid growth is a testament to the contributions of leading insurers and the critical insights it provides to the cyber insurance industry and beyond.
The claims losses analyzed within come from organizations across seven revenue groupings and 18 business sectors, covering 25 causes of loss and 13 types of data. With over 20 different data breakdowns, the report covers key metrics such as crisis management, legal expenses, business interruption, recovery, total incident costs, data exposure, and ransomware impact.
This year, the report once again highlights distinct challenges for small to medium-sized enterprises (SMEs) and large companies. One of the standout findings is the growing financial burden on SMEs, particularly due to the surge in Business Email Compromise (BEC) incidents. The average cost of a BEC claim skyrocketed from $84,000 in 2022 to a staggering $183,000 in 2023.
The report also underscores the varying impact of cyber risk across different sectors. In SMEs within the Professional Services sector, average incident costs surged from $199,000 in 2022 to $307,000 in 2023. In contrast, Healthcare SMEs saw their average incident costs continue to decline, from $583,000 in 2021 to $173,000 in 2023.
Average Incident Cost – Healthcare (SMEs)
“Healthcare and manufacturing SMEs seem to be benefiting from a modest drop in incident costs,” said Mark Greisiger, President of NetDiligence. “However, the financial services sector is facing a sharp rise in incident costs, reminding us that cyber risks evolve differently across industries.”
Greisiger also expressed gratitude for the study’s data contributors, saying, “We extend our sincere thanks to our cyber insurance partners, whose continued participation enables us to provide these invaluable insights to the cyber risk and insurance community.”
The findings from the 2024 Cyber Claims Study will be presented at the upcoming NetDiligence Cyber Risk Summit in Philadelphia on October 1, 2024. Additionally, two upcoming webinars will dive deeper into the report’s findings and the state of the cyber insurance market:
Webinar 1: Cyber Claims Study 2024: A Review of Findings and Frontline Insights
Date: Thursday, October 10, 2024 at 11:00 AM EDT
Click here to register
Webinar 2: Cyber Claims Study 2024: State of the Market
Date: Thursday, October 24, 2024 at 11:00 AM EDT
Click here to register
To download the full report and dive deeper into these findings, visit NetDiligence.com, or log into your cyber insurer’s eRiskHub® portal.
Media Contact:
Steve Kopanski
Director of Marketing, NetDiligence®
484-883-7523
[email protected]
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About NetDiligence
NetDiligence® specializes in Cyber Risk Readiness & Response services. With over 20 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, their authorized Breach Coach® program, and Breach Plan Connect®, a securely hosted cyber incident response plan solution with mobile app. NetDiligence publishes an annual Cyber Claims Study and traditionally hosts their Cyber Risk Summit conferences in Philadelphia, California, Toronto, Florida, London, and Bermuda. For more information, visit NetDiligence.com.
About RSM US LLP
RSM’s purpose is to deliver the power of being understood to our clients, colleagues, and communities through world-class audit, tax, and consulting services focused on middle market businesses. The clients we serve are the engine of global commerce and economic growth, and we are focused on developing leading professionals and services to meet their evolving needs in today’s ever-changing business environment. RSM US LLP is the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with 57,000 people across 120 countries. For more information, visit rsmus.com, like us on Facebook, follow us on Twitter and/or connect with us on LinkedIn.
About Experian
When every minute counts, count on Experian Data Breach Resolution for the partnership, solutions, and performance to create the best possible outcome. With 20+ years’ experience, we’ve managed some of the largest and highest-profile breaches in history. Our turnkey offerings include Experian Reserved Response™, data breach response, crisis response management, and identity protection. To learn more, visit experian.com/databreach or email [email protected].
About KYND
KYND is a cyber risk solutions provider dedicated to demystifying complex cyber risks, making them more manageable for insurers and their clients. Our next-generation solutions empower insurance partners to comprehensively assess, understand, and enhance their risk resilience with unprecedented ease. Our solutions address the critical challenges of ransomware, business email fraud, and cyber underwriting performance by providing actionable insights into membership wide exposure. Through innovative approaches, KYND transforms the way cyber risks are handled, fostering a safer and more secure digital landscape for all stakeholders. To learn more, visit KYND.io
About Constangy, Brooks, Smith & Prophete, LLP
For over 75 years, Constangy has provided workplace advice to employers. In 2023, it began providing data privacy and security services. Throughout its history Constangy has also been a diverse firm. It embraces the ABA “Resolution 113” goals to advance diversity, equity, and inclusion in the legal profession and has been recognized as one of the top law firms for diversity in each of the past seven years. To learn more, visit Constangy.com.
