Ransomware and business email compromise accounted for 53% of claims from 2019 to 2023.
Key takeaways
Ninety-eight percent of claims in the study were from small to medium-sized enterprises.
Large enterprises represented only 2% of the claims but accounted for 51% of the total incident costs.
Understanding the ongoing cybersecurity threats to the middle market
As cybersecurity threats and data security events continue to increase, understanding the costs and resources necessary to respond to a data breach is essential. RSM is a proud sponsor of the 14th annual NetDiligence® Cyber Claims Study, a report detailing the actual losses from data breaches and other cyber-related incidents covered by leading cyber insurance carriers.
This year’s report features an analysis of almost 10,000 claims arising from events that occurred between 2019 and 2023. Ransomware and business email compromises were the two leading causes of loss in the NetDiligence survey, accounting for 53% of all claims during that five-year period.
We continue to see SME clients transform their businesses to be more reliant on digital systems while failing to understand the inherent risks that come from complex digital ecosystems. This becomes very evident during the recovery process for a client where it’s clear they haven’t planned for resilience in their digital platform nor practiced operating their business processes during a crisis scenario. Helping educate companies on their digital systemic risks and build a proper resiliency plan for the business is vital.
Alden Hutchison, principal, RSM US LLP
Almost all the claims in the survey (98%) were from small to medium-sized enterprises with less than $2 billion in annual revenue. While large companies represented only 2% of claims, they accounted for 51% of the total incident costs in the report. However, the study shows no clear correlation between company size and the cost of a breach. Smaller organizations experienced large losses as well, with perhaps more of an impact compared to larger companies.
Download the report
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