Beazley publishes special US healthcare data breach insights report

Timed to coincide with the 2017 ASHRM conference, the report reveals that unintended disclosure remains the leading cause of data breach in the US healthcare sector.

New York, Oct. 16, 2017 (GLOBE NEWSWIRE) -- Timed to coincide with the 2017 American Society of Healthcare Risk Management (ASHRM) conference, leading specialist insurer Beazley has today published a special data breach report for the US healthcare sector. 

In the first nine months of 2017, unintended disclosure accounted for 41% of data breach incidents reported to Beazley by healthcare organization clients and shows no signs of abating. The high level of unintended disclosure incidents remains more than double that of the second most frequent cause of loss, hack or malware (19%).  Whether it is an email containing PHI sent to the wrong recipient, discharge instructions given to the wrong patient, or a server containing protected health information (PHI) accidentally left open to the public, healthcare entities continue to struggle with human error on a regular basis.

Beazley’s report goes on to highlight the rise in insider and social engineering incidents before considering the marked increase in the number of Department of Health and Human Services Office for Civil Rights enforcement activities in recent years and the implications for healthcare organizations.  The report concludes with examples of claims filed by Beazley healthcare sector clients.

The full report is available here

Katherine Keefe, global head of Breach Breach Response Services said: “All organizations face the reality that data breaches have become inevitable. And the stakes are high: they hold personal data on trust for customers, employees and patients. The volume of protected health information maintained by healthcare organizations and the digitization of electronic health records have increased the vulnerability for large breaches. It is important to understand the underlying causes so as to mitigate and manage them effectively.  In our special healthcare breach insights report, we highlight issues currently trending in the sector.”

Beazley’s dedicated site for clients with a data breach policy, and its newly-launched broker portal provide an all-encompassing set of resources designed to help clients and brokers remain informed and educated on the constantly evolving cyber risk and data breach landscape.

Beazley is a pioneer in cyber liability and data breach insurance.  It remains the only insurer to have a dedicated in-house breach response team responsible for coordinating the expert forensic, legal, notification and credit monitoring services that clients need to satisfy all legal requirements and maintain customer confidence. Since the launch of Beazley Breach Response in 2009, Beazley has helped clients handle more than 7,000 data breaches.



Note to editors:

Beazley plc is the parent company of specialist insurance businesses with operations in
Europe, the US, Canada, Latin America, Asia, the Middle East and Australia. Beazley manages
six Lloyd’s syndicates and, in 2016, underwrote gross premiums worldwide of $2,195.6 million.
All Lloyd’s syndicates are rated A by A.M. Best. 

Beazley’s underwriters in the United States focus on writing a range of specialist insurance
products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc.,
an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.

Beazley is a market leader in many of its chosen lines, which include professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.

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