External cyber incidents account for 85% of claim values

An Insurance Business Magazine article.

While companies should fear cyberattacks from external bad actors, a new analysis by Allianz Global Corporate & Specialty (AGCS) has revealed that it’s employee mistakes and technical issues that are to blame for the majority of cyber claims.

The report, “Managing the Impact of Increasing Interconnectivity – Trends in Cyber Risk,” analysed 1,736 cyber-related insurance claims worth US$770 million involving AGCS as well as other insurers from 2015 to 2020. It found that external attacks on companies, such as “DDoS” attacks, resulted in the costliest cyber losses, but internal incidents, including human error and systems failure, happen more frequently, though they also have a less significant financial impact.

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