The True Cost of Breaches to Insurers
NetDiligence President Mark Greisiger is quoted in a Jan. 17, 2014 post at CRN.com that for 145 data breach claims that took place in 2013, insurers paid $84 million in breach and security-related costs. This from an annual study performed by NetDiligence which typically is presented or previewed at the company’s eponymous cyber risk conference produced in collaboration with HB each June in Philadelphia and each October in California.
Mark told CRN.com that he hopes the study will shed light on the real cost of data breaches to the insurance industry. “The claims were paid out for legal defense, legal settlements, regulatory fines, forensics costs, credit monitoring and identity theft remediation costs, the study revealed. The bulk of the payouts paid for crisis services, which include forensics, notification, credit monitoring and legal counsel. The smallest payout for crisis services was $2,569, while the largest payout was $11.5 million. The average payout was $737,473,” said the article, written by Robert Westervelt for CRN.