Security News > 2020 > November > Cyber insurance claims on the rise

External attacks on companies result in the most expensive cyber insurance losses, but it is employee mistakes and technical problems that are the most frequent generator of claims by number, according to a report from Allianz Global Corporate & Specialty.

Growth of the global cyber insurance market fueling cyber insurance claims.

The number of cyber insurance claims has steadily risen over the last few years, up from 77 in 2016, when cyber was a relatively new line of insurance, to 809 in 2019.

This steady increase in claims has been driven, in part, by the growth of the global cyber insurance market which is currently estimated to be worth $7bn according to Munich Re. The report also highlights that there has been a 70%+ increase in the average cost of a cybercrime to an organization over five years to $13mn and a 60%+ increase in the average number of security breaches.

Accidental internal incidents, such as employee errors while undertaking daily responsibilities, IT or platform outages, systems and software migration problems or loss of data account for 54% of cyber claims analyzed by number but, often, the financial impact of these is limited compared with cyber crime.

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