Target. Michaels. P.F. Chang's. We are hearing more and more the names of major corporations victimized by data breaches. More alarming than the corporate names themselves are the insurance claims, damages and costs associated with a single data breach event.
A 2013 study of the average insurance carrier payout on a data breach claim from that same year (not including the uninsured loss) found that the average claim payout was $954,253. Further, when accounting for pending claims and self-insured rententions that were likely to be associated with claims in 2013, that average insurance carrier payout rose to $3.5 million per claim. Contrast that to some figures that have the average homeowners property damage claim just over $34,000 for fire, lightening and debris removal claims and averages of approximately $7,300 for water, wind and freezing claims, and we really should be alarmed.
These staggering data breach figures have prompted a growth in this industry for insurance professionals, but we must look beyond the breaches to cyber loss recovery.
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