Shocking Study: MDR Services Cut Cyber Insurance Claims from $3M to Just $75K

May 26, 2025
optrics

New Data Shows MDR Services Slash Cyber Insurance Claims by 97.5% đź”’

In today's threat landscape, organizations are constantly weighing the effectiveness of different security approaches. New research from Sophos delivers compelling evidence that Managed Detection and Response (MDR) services dramatically reduce both the financial impact and recovery time of cyber incidents.

The Numbers Don't Lie: MDR's Impact on Cyber Insurance Claims

The findings are striking: organizations using MDR services face average cyber insurance claims of just $75,000, compared to a whopping $3 million for those relying solely on endpoint protection. That's a 97.5% reduction in claim value, representing massive potential savings for businesses of all sizes.

But it's not just about the money. The study, which analyzed 282 claim events across 232 organizations, reveals that MDR users get back to business faster:

  • 47% of MDR users achieve full operational recovery within a week
  • Only 18% of endpoint-only users recover in the same timeframe
  • EDR/XDR users fall in between at 27%

Why Traditional Security Approaches Fall Short

While EDR/XDR solutions show improvement over basic endpoint protection—reducing median claim size to $500,000—they still leave organizations vulnerable to significant losses. The challenge often lies in maintaining 24/7 coverage and having the right expertise on hand.

Traditional endpoint protection proves particularly inadequate, with users experiencing:

  • The highest insurance claims
  • The longest recovery times (up to 40 days on average)
  • The most unpredictable outcomes

The Sophos Advantage: Combining Technology with Expertise

Sophos MDR services, working in conjunction with Sophos Firewall, provide organizations with the best of both worlds: cutting-edge technology and round-the-clock expert monitoring. This powerful combination enables:

  • Rapid threat detection and response
  • Consistent, predictable security outcomes
  • Significantly reduced financial impact from cyber incidents
  • Faster recovery times following network security events

Making the Data-Driven Security Decision

For IT leaders and security professionals, these findings provide clear direction for security investments. The research demonstrates that MDR services deliver measurable risk reduction and quantifiable ROI—essential metrics for justifying security spending to boards and executives.

🤔 Ready to see how Sophos MDR services could transform your organization's security posture and reduce your potential cyber insurance claims? Book a demo today to learn more about our comprehensive security solutions.

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