Breaches of data security are an increasingly serious problem for data-intensive industries of all kinds. Recent research shows that 90% of all large organizations—including insurance carriers—suffered cyber security breaches in 2015, up from 81% in 2014.1 Moreover, cybersecurity breaches are becoming more frequent and more expensive; according to the Ponemon Institute’s latest study on cybersecurity, the average consolidated total cost of a data breach grew from $3.8 million to $4 million.
The study also reports that the average cost incurred for each lost or stolen record containing sensitive and confidential information increased from $154 to $158.2.