The Cost of a Cyber Breach Could Overwhelm Your Financial Institution Clients
The NetDiligence® 2016 Cyber Claims Study revealed that the most expensive cyber breaches between 2013 and 2015 occurred in the financial services sector with upwards of $15 mil. of losses and costs. In addition, financial services had the highest average breach cost at $1.8 mil. and the highest average claim payout at $1.3 mil. The financial services sector also had the greatest number of exposed records at 78 million.
The study analyzed actual claims payouts and total breach costs of 174 covered cyber events from 19 insurance companies and brokerages primarily in the US. Hackers were the most frequent cause of loss (23%), follow by malware/virus (21%), staff mistakes (9%) and rogue employees (7%). Insiders were involved in 30% of all the submitted claims.
Among all industry sectors, the study found that for covered cyber breaches:
- The average claim payout was $495K.
- The average breach cost was $665K.
- The average legal defense cost was $130K and legal settlement was $815K.
- The average cost for all crisis services including forensics, credit monitoring, legal guidance and misc. was $357K.
The complete study is available on the CYBER Carry-Thru web portal, powered by NetDiligence®. All Berkley FinSecure Management Liability policyholders with the Electronic Banking option have complimentary access to CYBER Carry-Thru.
This Valuable Resource Could Be Critical for Your Customers
CYBER Carry-Thru is a private, mobile-friendly website that provides tools and resources to help you understand your exposures, establish a response plan and minimize the effects of a breach on your organization.
Key Features of the CYBER Carry-Thru portal include:
- Incident Roadmap – includes suggested steps to take following a network or data breach incident, free consultation with a Breach Coach® and access to a breach response team.
- News Center – cyber risk stories, security and compliance blogs, security news, risk management events and helpful industry links
- Learning Center – best-practices articles, white papers and webinars from leading technical and legal practitioners
- Risk Manager Tools – assists you in managing your cyber risk including a self-assessment and state breach notification laws
- eRisk Resources – a directory to quickly find external resources with expertise in pre and post-breach disciplines
Let Us Help You and Your Clients Be Prepared
Make sure your Financial Institution customers have the right insurance coverage and access to valuable CYBER Carry-Thru resources. Contact any one of us below for help in making sure your FI customers are protected!
VP Sales and Distribution
Jon Martin 410-372-6325
Chuck Cook 913-553-8559
Jeanne Shrum 207-415-4587
Scott Harris 512-800-5393
Dave Cassel 443-987-8619
Pete Verretto 973-775-5233
Experts focused on your protection.
Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
For additional information concerning W.R. Berkley Corporation’s insurance company subsidiaries, please visit: http://wrbc.info/