Beecher Carlson Insurance Services, a specialized large account insurance broker, has released its CyberSelect Loss Model. The model is designed to provide guidance to companies seeking to model their largest exposures to the loss or theft of confidential personal information.
“Mega-breaches have seen upward trend in both their frequency and quantity of records affected as indicated by the recent breaches at big box retail companies, large financial institutions, media companies and healthcare providers,” said Christopher Keegan, Beecher Carlson’s national cyber liability practice leader. “We felt it was pertinent to develop a tool that will help companies understand their potential loss in case of a breach.”
Beecher Carlson compiled cost information from the largest breaches, fees charged by breach response vendors and information derived from its own independent research and combined the information to create a calculator which can aid in estimating the impact of each input in such mega-breach events.
Using regression statistical analysis, the model takes into account the difference in dealing with costs between centralized and distributed networks and differentiates between the types of information that a company holds.
Beecher Carlson has found that costs per record are higher for smaller breaches but, generally, costs diminish at different rates as the breaches get larger. CyberSelect Loss Model insight comes from individual probability distributions for each type of breach cost of healthcare information, credit card or personal information.
John Kerns, executive managing director of Beecher Carlson, noted that CyberSelect Loss Model “can be used by companies to aid in identifying their divisions, branches or locations which are the most exposed to information breaches.”
Beecher Carlson, CyberSelect, Insurance, Christopher Keegan, Risk Management, IT and Data Security, US, John Kerns
