Insurers are handling 'hundreds' of claims for data breaches
By The News Desk|19 December 2016
Figures from a leading business insurer which works with over 40,000 businesses in more than 60 different countries, suggest that insurance claims for data breaches are being made at a rate of more than one a day. Firms should have specialist cyber-insurance plans in place.
As a result of stolen data shared online, the biggest claims were for breaches of privacy and the theft of cash, with claims in 2016 up 78% on 2015. Statistics show that 90% of claims were from businesses with less than £50m revenue, and were mainly being made by British firms where security is generally lower than in the US.
Ransomware was behind 16% of the claims filed with CFC, behind data breaches (31%) and financial loss (22%), and account takeovers were proving tempting for criminal hackers.
Specialist cyber-insurance is becoming more necessary to help firms cope with the volume of attacks they face, with many insurance firms now offering security, data forensics, incident response and PR firms on call to help respond when a claim is filed, as well as experts with experience negotiating with kidnappers and extortion demands.