Average Cost of a Data Breach Soars 29%

Preparation Is Key to Reducing Breach Impact

According to a recent report from IBM and Ponemon Institute, summarized in an article on itwire.com, the average cost of a data breach is now US$4 million, up 29% from in 2015.

The “2016 Cost of a Data Breach Study: Global Analysis” from IBM and Ponemon Institute was based on the experience of 383 companies in 12 countries that had data breaches ranging from approximately 3000 to over 101,500 compromised records.

One of the more interesting findings was that the average cost of a breach globally was US$158 per record but there were several factors that helped reduce the cost of a breach:

  • Incident response teams reduced the cost by $16/record
  • Employee training, $9/record
  • Board-level involvement, $6/record
  • Insurance protection, $5/record

Although this report is not specifically targeted at financial institutions, the conclusions can certainly be applied to the financial services industry; being prepared and having the right resources on hand will save you money, time and effort when a breach occurs.

Let Us Help You and Your Clients Be Prepared

At Berkley FinSecure, we don’t just stop with the policy – we have the resources and services that extend and “carry through” after the policy is written, along with a commitment to be there when you need us most.

Berkley FinSecure’s Management Liability policyholders with the Electronic Banking option receive complimentary access to the CYBER Carry*Thru portal, powered by NetDiligence®. CYBER Carry*Thru is a private, mobile-friendly website that provides tools and resources to help you understand your exposures, establish a response plan and minimize the effects of a breach on your organization.

Key Features of the CYBER Carry*Thru portal include:

  • Incident Roadmap – includes suggested steps to take following a network or data breach incident, free consultation with a Breach Coach® and access to a breach response team.
  • News Center – cyber risk stories, security and compliance blogs, security news, risk management events and helpful industry links
  • Learning Center – best-practices articles, white papers and webinars from leading technical and legal practitioners
  • Risk Manager Tools – assists you in managing your cyber risk including a self-assessment and state breach notification laws
  • eRisk Resources – a directory to quickly find external resources with expertise in pre and post-breach disciplines

Click here for more information on CYBER Carry*Thru and our other risk management service, the EPL Carry*Thru Help Line.

Make Sure Your Financial Institution Clients Have the Right Coverage

Make sure your customers have the right insurance coverage from the financial institution experts, Berkley FinSecure.  Contact any one of us below for help in making sure your FI customers are protected!

VP Sales and Distribution
Jon Martin 410-372-6325
   Midwest Region
   Chuck Cook 913-553-8559
Northeast Region
Jeanne Shrum 207-415-4587
   West Region
   Scott Harris 512-800-5393
Mid-Atlantic/South Regions
Dave Cassel 443-987-8619
   Northwest Region
   Pete Verretto 973-775-5233

 

Experts focused on your protection.

We deliver.

Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

For additional information concerning W.R. Berkley Corporation’s insurance company subsidiaries, please visit: http://wrbc.info/Licensing/License.htm 

The post Average Cost of a Data Breach Soars 29% appeared first on Berkley FinSecure.

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