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The frequency and severity of cyber attacks is up as reported by Allianz Commercial. Who has seen the frequency of large cyber claims up by 14% an severity 17% in the first six months of 2024.
While ‘non-attack’ claims also increased, as privacy cases also rise.
“We are seeing more data privacy breach claims in the U.S. where there is a growing trend for class-action litigation against large U.S. and international corporations related to privacy violations, such as around consent and data usage,†said Daum. “The cost of some of these claims can be even larger than a ransomware incident, in the hundreds of millions of dollars.â€
With data breach litigation seen as the fastest growing areas of U.S Class Action litigation 2 times more than in 2022 and 4 time that of 2021. Class action suits invariable focus on a companies management of cybersecurity risk. Requiring boards demonstrate oversight and assurance of cybersecurity risk management.
With the SEC final cyber rule in place and further cyber regulation planned in the U.S, and cyber regulation coming on line in the EU in early 2025. The opportunity for litigation is only going to increase if cyber attack frequency and severity continue unabated.
Should these figures be of concern to the insurance sector? As pointed out by the German finance regulator BaFin earlier this year, the cyber insurance market is expected to grow. One wonders how the market will manage as frequency and severity of attacks continues?
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@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan
Veritas GRC BaFin Allianz Commercial
#cybersecurity #cyberriskmanagement #cyberinsurance
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