Recovery Costs from Cyberattacks Outpace Insurance Coverage

OXFORD, U.K. — Junho 26, 2024 —

Sophos, a global leader of innovative security solutions for defeating cyberattacks, today released findings from its survey, “Cyber Insurance and Cyber Defenses 2024: Lessons from IT and Cybersecurity Leaders.” According to the report, 97% of those with a cyber policy invested in improving their defenses to help with insurance, with 76% saying it enabled them to qualify for coverage, 67% to get better pricing and 30% to secure improved policy terms.

The survey also revealed that recovery costs from cyberattacks are outpacing insurance coverage. Only one percent of those that made a claim said that their carrier funded 100% of the costs incurred while remediating the incident. The most common reason for the policy not paying for the costs in full was because the total bill exceeded the policy limit. According to The State of Ransomware 2024 survey, recovery costs following a ransomware incident increased by 50% over the last year, reaching $2.73 million on average.

“The Sophos Active Adversary report has repeatedly shown that many of the cyber incidents companies face are the result of a failure to implement basic cybersecurity best practices, such as patching in a timely manner. In our most recent report, for example, compromised credentials were the number one root cause of attacks, yet 43% of companies didn’t have multi-factor authentication enabled,” said Chester Wisniewski, director, global Field CTO.

“The fact that 76% of companies invested in cyber defenses to qualify for cyber insurance shows that insurance is forcing organizations to implement some of these essential security measures. It’s making a difference, and it’s having a broader, more positive impact on companies overall. However, while cyber insurance is beneficial for companies, it is just one part of an effective risk mitigation strategy. Companies still need to work on hardening their defenses. A cyberattack can have profound impacts for a company from both an operational and a reputational standpoint, and having cyber insurance doesn’t change that.”

Across the 5,000 IT and cybersecurity leaders surveyed, 99% of companies that improved their defenses for insurance purposes said they had also gainedbroader security benefits beyond insurance coverage due to their investments, including improved protection, freed IT resources and fewer alerts.

“Investments in cyber defenses appear to have a ripple effect in terms of benefits, unlocking insurance savings that organizations can be diverted into other defenses to more broadly improve their security posture. As cyber insurance adoption continues, hopefully, companies’ security will continue to improve. Cyber insurance won’t make ransomware attacks disappear, but it could very well be part of the solution,” said Wisniewski.

Data for the Cyber Insurance and Cyber Defenses 2024: Lessons from IT and Cybersecurity Leaders report comes from a vendor-agnostic survey of 5,000 cybersecurity/IT leaders conducted between January and February 2024. Respondents were based in 14 countries across the Americas, EMEA and Asia Pacific. Organizations surveyed had between 100 and 5,000 employees, and revenue ranged from less than $10 million to more than $5 billion.

Read the full “Cyber Insurance and Cyber Defenses 2024: Lessons from IT and Cybersecurity Leaders,” on Sophos.com for additional global findings and data by sector.

 

Sobre a Sophos

A Sophos é líder mundial em soluções inovadoras e avançadas em segurança que defendem contra ataques cibernéticos, incluindo o serviço MDR (Managed Detection and Response) e serviços de resposta a incidentes, além de um amplo portfólio de tecnologias de segurança de endpoint, rede, e-mail e nuvem. Uma das maiores provedoras globais pure-play de segurança cibernética, a Sophos se incumbe da defesa de mais de 600.000 organizações e de mais de 100 milhões de usuários contra adversários ativos, ransomwares, phishing, malwares e outros ataques. Os produtos e serviços da Sophos são interconectados através do painel de gerenciamento do Sophos Central e administrados pelo Sophos X-Ops, a unidade de inteligência de ameaças da empresa que oferece abrangência entre domínios. A inteligência do Sophos X-Ops otimiza todo o ecossistema de segurança cibernética adaptativa da Sophos, que inclui um Data Lake centralizado que se utiliza de um rico acervo de APIs abertas disponíveis para clientes, parceiros, desenvolvedores e outros fornecedores de cibersegurança e tecnologia da informação. A Sophos oferece Cybersecurity as a Service para as organizações que necessitam de soluções de segurança gerenciada. O cliente também pode gerenciar a sua própria segurança cibernética, utilizando a plataforma de operações de segurança da Sophos, ou operar seguindo uma abordagem híbrida para complementar suas equipes internas com os serviços da Sophos, como a caça e remediação de ameaças. A venda de produtos e serviços da Sophos é feita por parceiros revendedores e provedores de serviços gerenciados (MSP) em todo o mundo. A Sophos está sediada em Oxford, no Reino Unido. Mais informações se encontram disponíveis no site www.sophos.com.