Understanding the Risks in the Cyber Insurance Landscape
- Phishing Payouts: Phishing is the #1 leading cause of payouts in cyber insurance, leading to escalating costs for insurance companies.
- Lack of Training: The absence of cybersecurity awareness training for clients increases vulnerability to attacks and subsequent payouts.
- Standardization Issues: Cyber insurance lacks standardized policy terms, causing confusion among policyholders. The absence of historical loss data makes accurate policy pricing and loss prediction challenging.
- Regulatory Challenges: The regulatory landscape for cyber insurance is still evolving. Varying requirements across jurisdictions complicate operations for insurers in multiple regions.
- Surge in Claims: Over the past 3 years, cyber insurance claims have increased by 100%, with payouts rising by 200%.
"Since integrating with Keepnet, we've seen a dramatic 89% reduction in cyber insurance payouts. This isn't merely a financial win; it stands as a testament to our commitment to client security and the trust they place in us.”
Since integrating with Keepnet Labs, we've seen a dramatic 89% reduction in cyber insurance payouts. This isn't merely a financial win; it stands as a testament to our commitment to client security and the trust they place in us.
Total Cost Saved From Claims
Before Keepnet | After Keepnet | |
Median Cost of a Cyber Attack | $18,000 | $18,000 |
Number of Claims Annually | 1,644 | 180 (11% of 1,644) |
Total Payout Annually | $29,592,000 | $3,240,000 |
Reduction in Payout | - | 89% |
How Keepnet Helped
How the Insurer Strengthened Their Cybersecurity:
- Revealing Breached Employees: Searched for leaked passwords and emails to check for compromised employees.
- Phishing Reporting: Installed an AI-powered phishing reporting add-in for detection and response.
- Identifying Risks: Identified risky behaviors, including falling for phishing scams and not reporting incidents.
- Awareness Training: Implemented a training program using behavioral science techniques to promote secure behavior.
- Email Security: Tested email security tools (SEGs) to find and fix vulnerabilities.
- Threat Sharing: Updated threat-sharing policies to include attacker profiles and tactics, sharing this intelligence with policyholders and authorities.
Operational Results
- Addressed human risk and the lack of detection and response capabilities within its client base.
- Employees and policyholders identified phishing scams in 91% of phishing campaigns.
- Created a security culture across policyholders that reduced the risk of data breaches.
Strategic Results
- Reduced cyber insurance payouts by up to 89% by addressing human risks among policyholders.
- Lowered the insurance claims from 1,644 to just 180.
Improved incident response measures across the policyholders. - Helped policyholders’ employees to report phishing attacks actively.
