Cost savings through Sophos MDR: How Managed Detection and Response can reduce your cyber insurance costs

A recent study by Sophos has shown that the use of Managed Detection and Response (MDR) services can significantly reduce the amount of cyber insurance claims.

Key Findings of the Sophos Study

The analysis of 282 claims revealed impressive differences in financial impact depending on the security solution used:

• MDR Services: Companies using MDR services had average claims of 71,828 euros.
• EDR/XDR Solutions: With Endpoint Detection and Response (EDR) or Extended Detection and Response (XDR), claims averaged 478,850 euros.
• Endpoint Protection Only: Companies relying solely on endpoint security solutions recorded average claims of 2.87 million euros.

These figures illustrate that using MDR services reduces claims by an impressive 97.5% compared to endpoint protection alone.

Why Do MDR Services Lead to Such Savings?

MDR services provide 24/7 monitoring by specialized security experts who can detect and neutralize threats in real time. This proactive approach not only minimizes the risk of successful attacks but also reduces the financial and operational impact in case of an incident.

Impact on Cyber Insurance

Lower risk and reduced claims have a positive effect on cyber insurance terms:

• Lower Premiums: Insurers can offer better rates due to reduced risks.
• Better Policy Conditions: Companies with robust security measures, such as MDR services, can benefit from improved contract terms.

Effective protection through MDR services thus creates a positive cycle: lower risks lead to reduced claims, which in turn lowers insurance costs.

Conclusion

Investing in MDR services like Sophos MDR not only enhances protection against cyber threats but also results in significant cost savings on cyber insurance. Companies should consider these benefits to strengthen their security posture and use financial resources more efficiently.