Insurer Success in Cutting Phishing Claims by Nearly 89%
Discover how a leading insurer cut phishing claims by 89% and improved cybersecurity with Keepnet Labs.
Introduction
A prominent EU insurer with over 4,400 agents, 1,700 brokers, and 4,000 employees faced rising payouts due to phishing attacks on policyholders. Over the past 3 years, cyber insurance claims doubled, and payouts surged by 200%, with average losses of $1,500 per employee.
Seeking a solution, the insurer aimed to partner with a provider offering a consolidated platform for clients with their cyber policies. The goal was to minimize breaches, reduce payouts, and ensure a secure digital environment for all stakeholders.
Successful Outcomes
Reduced cyber insurance payouts by up to 89%.
Deduced the claims from 1644 to 180 per year.
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.”
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.
"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."