Cyber losses record six-fold jump but preparedness increases

Cyber losses have risen nearly six-fold, from a median $10,000 per firm to $57,000, in the past year, reveals a new study commissioned by insurer  Hiscox.

However, there has been a "marked improvement in cyber security readiness" within the private and public sector organisations in the US, UK, Belgium, France, Germany, Spain, the Netherlands and Ireland.

According to the Hiscox Cyber Readiness Report, the total cyber losses among the study group rose from $1.2 billion to nearly $1.8 billion. The highest reported cyber losses were by a UK financial services firm at $87.9 million. The highest loss from any one cyber event was $15.8 million, involving a UK professional services firm.

The most heavily targeted sectors were financial services, manufacturing and technology, media and telecoms (TMT). Irish firms suffered the highest median costs, at over $103,000.

The report stated that firms are now responding with more rigorous security measures and higher spending.

Gareth Wharton, Hiscox cyber CEO, said: "While the number of firms reporting a cyber breach is down this year, the cost of criminal activity in this area appears markedly higher. The number of businesses that have paid a ransom following a malware infection is chilling. There is, however, one very positive message from this year’s report. There is clear evidence of a step-change in cyber preparedness, with enhanced levels of activity and spending.

"Take-up of standalone cyber insurance remains patchy, but this report is a reminder that firms are many times more likely to have a cyber incident than either a fire or a theft – for which most automatically insure."