Captive.com logo

Captive Insurance News

Free Captive Wire Report

Tax Considerations for Captive Insurers

A FREE 16-page special report courtesy of Captive.com

Dig deep into important issues and trends in captive insurance. Download this FREE special report featuring practical knowledge and insights from nine respected captive insurance thought leaders!

Show Me My Free Report

Captive Insurance Companies Have Resource for Considering Cyber-Liability

Cyberrisk
June 23, 2016

Is cyber-liability coverage being considered for your captive insurance company? A benchmark research study, titled 2016 Cost of Data Breach Study: Global Analysis, sponsored by IBM and conducted by Ponemon Institute LLC, may help with your decision making.

The study is based on the survey results from 383 companies located in 12 countries. Of the total, 64 companies, 17 percent of the total number sample size, are based in the United States. It should be pointed out that the study is not solely based on larger companies. Companies that have fewer than 500 employees represent 12 percent of the sample with 20 percent representing those with 500–1,000 employees.

The three root causes of data breaches, as identified by the study, are (1) malicious or criminal intent, (2) system glitches, and (3) human error. In the United States, root causes are 50 percent, 27 percent, and 23 percent, respectively.

A total of 16 factors that influence the cost of a data breach are identified in the study. The study reports the average cost per lost or stolen record for all of the companies in the sample is $158. In the United States, the average cost per stolen record is $221. There is also a breakdown in the report of the average cost by industry classification.

Seven megatrends in the cost of data breach research are cited in the study.

"The biggest financial consequence to organizations that experienced a data breach is lost business," is stated as the second of the seven megatrends. 

Most of the data breaches studied in the report happened in 2015.

The study is recommended reading for those considering cyber-liability coverage for their captive insurance company. Registration on the IBM website is required to download one or more of the reports.

In addition to the 2016 Cost of Data Breach Study: Global Analysis, there are several country-specific analyses, including a U.S.-specific version.

Captive Insurance Company Reports
Follow Captive.com on Twitter

Twitter Feed