Chubb has been a leading provider of cyber risk solutions since the launch of our first product in 1998. As a result of these decades of experience, Chubb have gained meaningful insights into the various perils and average costs associated with cyber incidents in direct relation to the many industries affected.
By sharing Chubb industry specific experience, Chubb's aim is to increase awareness of cyber exposures for our insureds and broker partners. This information can aid executives, risk managers and information technology professionals in crafting their overall enterprise risk management framework including proactive loss mitigation as well as cyber insurance tailored for the organization.
Chubb's past decade of cyber claims experience helps to dispel the notion that cyber insurance only relates to hacking and that these technology driven incidents only target organisations which handle a significant amount of data. Companies may face cyber exposures far beyond cyber incidents such as hacks which occupy the news headlines.
Based on a decade's worth of data collected, the following are average costs our insureds have incurred in responding to cyber incidents before any follow on liabilities like regulatory proceedings or other litigation. While liability issues can’t always be mitigated, the majority of claims costs result from direct crisis costs incurred to contain and remediate the incident.
While the healthcare industry has made up the largest share of our cyber claims, the distribution of claims across all industries continues to widen.
While hacking has represented a majority of cyber incidents for some industries like Retail, a large share of the incidents Chubb handles stem from other scenarios like rogue employees or simple human errors. For example, our clients which are healthcare organisations have faced a vast majority of human related issues as opposed to malicious hacks.
Based on our global claims data, human-related errors is seen as one of the most common causes for cyber claims among our clients from various industries, with such cause being more common in certain industries than others. These trends may potentially provide important insights for organisations as they identify their vulnerabilities and areas to allocate proactive risk mitigation resources.
Cyber related exposures will continue to evolve and therefore demand innovative coverage and risk mitigation solutions. Chubb’s information sharing and experience based approach to cyber risk aim to support this ever important process.
Disclaimer - This content is brought to you by Chubb Insurance Malaysia Berhad (“Chubb”) as a convenience to readers and is not intended to constitute advice or recommendations upon which a reader may rely. Chubb makes no warranty or guarantee about the accuracy, completeness, or adequacy of this content. It is the responsibility of the reader to evaluate the quality and accuracy of material herein.