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The Average Cyber payout for large companies last year stood at $3.4 million.

Feb 17, 2015

A study recently conducted by a leading cyber risk assessment and data breach company in the US has found that the average cyber payout for large companies last year stood at $3.4 million.

NetDiligence compiled data from 117 cyber liability insurance claims, 111 of which involved the exposure of sensitive data, and found that larger companies had an average claim of $3.4 million, while smaller counterparts received over $870,000 on average.

Hackers accounted for 30% of data loss while staff mistakes made up for 14% as businesses with revenue from $350 million to $2.3 billion were the most targeted followed by smaller companies.

Companies worth less than $60 million were targeted in 23% of cases as the fourth annual study also found that the median number of records lost was 3,500. (Insurance Business, 05 Dec 2014)

KPMG’s Partner for Technology, Risk and Assurance, Mark Tims, has warned Australian companies that the increase in cyber-attacks could become “the new normal” as companies grapple for their online future.

In a special report published with the Australian Financial Review, Tims details his thoughts on the future of cyber risk and it makes for concerning reading.

“In the next five to 10 years I see what we’re dealing with now as almost the new normal. Business is not going to get simpler.

“It’s going to stay online; and digital, social media will remain and there will be more advances in technology, with the cloud and big data becoming more important.”

“I see organisations continuing to be under attack. It’s just going to be part of doing business.” (Insurance Business, 10 Dec 2014)

Australian businesses are going through a continuous battle to keep up with change and alleviating risk

AustBrokers Comsure believe that Cyber Crime, and mitigating against this risk, is a “cost of doing business” in today’s world. It is one of the biggest new challenges that face organisations today and especially if nothing is done about it.

Contact your AustBrokers Comsure Adviser on 1800 122 194 should you wish to discuss Cyber insurance and what this will do for your business.

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