image

Articles

Review of Cyber Coverage Developments From 2023 — A Policyholder’s Perspective

Westlaw Today

  • Published On: March 1, 2024

The prevalence and impact of cyber incidents continued to increase in 2023. Globally, the average cost of a data breach reached an all-time high of $4.45 million, which reflects a 2.3% increase from 2022, and a 15.3% increase since 2020.1 Cyber incidents were even more costly in the United States, where the average cost of a data breach was $9.48 million. That cost comes on top of a 78% increase in recorded data breaches in the U.S. in 2023.2

This trend shows no sign of slowing — in the last month alone, cybercriminals hijacked the account of the U.S. Securities and Exchange Commission ("SEC") on X (formerly Twitter), and (in a separate event) caused a mistrial in a Colorado federal court following an unspecified hacking incident after jury selection.

Naturally, concerns over growing cyber risks in recent years have yielded a host of new regulations, and, at the same time, insurance companies have introduced new policy provisions and revised existing provisions in response to evolving liabilities arising from cyber and privacy-related incidents. Below, we highlight a few key cyber coverage decisions and privacy-liability trends from 2023, and identify several takeaways for policyholders for the coming year.

To read this full article, click here or download PDF. 

Related People
image
Luma S. Al-Shibib
View Moreimage
image
John M. Leonard
View Moreimage
image
James A. Goodridge
View Moreimage

© Copyright 2024 by Anderson Kill P.C.