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Cyber claims analysis offers insight into cyber risks across the globe

Cyber Risk Management|Financial, Executive and Professional Risks (FINEX)
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By Glyn Thoms | August 25, 2020

We have drawn in-depth analysis from our cyber claims data to produce our Cyber Claims Analysis Report. The report illustrates cyber claims trends, causes and losses, and provides insight as to how to build mitigation measures.
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Willis Towers Watson at Airmic Fest

In-depth analysis from Willis Towers Watson cyber claims data forms the foundation of our Cyber Claims Analysis Report. The report illustrates cyber claims trends, causes and losses, and provides insight as to how to build mitigation measures against cyber loss.

The claims reported by clients from 2013 to December 2019 comes to a total of close to 1,200 claims from nearly 50 countries. The average settled cyber claim (where any type of cost has been incurred, excluding zero value losses) is $4.88m.

$4.88m
the average settled cyber claim

At Willis Towers Watson we continuously analyse claims reported by our clients. This enables us to understand the nature, trends, causes and cost breakdown of loss events impacting businesses.

This report uses our analysed claims data to provide specific insight into the types of loss that your business may be exposed to. As well as reviewing the key findings, we offer insight and guidance on the impact of these on risk management and mitigation.

Key findings include:

  • Data breaches are the most frequently reported losses and have the largest total amount of costs associated with them.
  • Malicious data breaches carried out by third-parties (as opposed to accidental data breaches by the company or malicious data breaches carried out by rogue employees) are the most frequently occurring and most expensive type of data breach loss.
  • There has been a very noticeable increase in ransomware events in 2019.
  • This low investment, low risk and high reward method of cybercrime looks set to continue to grow.
  • Third party supplier risk led to 28% of first party losses.
  • For nearly one in ten settled first party losses, the total settlement cost (including specialist costs and other expenses) exceeded $2.5m.
  • The most frequently notified social engineering event is still that of impersonation of a vendor/supplier. - Crime policies can provide wider coverage, but the specific policy language needs to be checked

Download the full report to read the findings and impacts on your risk strategy.

Please note- All claims that we have analysed are included in the calculation for the average claim settlement, the determination of the largest loss and the loss amount distribution charts. However, due to the distorting impact of very large losses, we remove “outliers” from the other charts within the report.

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Cyber report PDF 6.5 MB
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