A new study by Sophos reveals that organizations using Managed Detection and Response (MDR) services file significantly lower cyber insurance claims than those relying solely on endpoint security solutions. The research shows that MDR users’ median claim amount is just $75,000, compared to $3 million for endpoint-only users—a 97.5% reduction.
“Cyberattacks are inevitable, but strong defenses aren’t. This study helps organizations and insurers focus on the most effective cybersecurity investments.”
– Sally Adam, Senior Director, Solution Marketing, Sophos
This massive difference is due to MDR’s expert-driven, 24/7 monitoring and proactive threat mitigation, which stop cyberattacks before they cause severe financial damage. Organizations using Endpoint Detection and Response (EDR) or Extended Detection and Response (XDR) tools also benefited, with a median claim amount of $500,000—six times lower than endpoint-only users. However, EDR/XDR claim outcomes were less predictable, highlighting a reliance on in-house expertise.
MDR Users Recover Faster from Cyberattacks
The study also examined ransomware recovery times, finding that MDR users recovered in just three days, while endpoint-only users took 40 days, and EDR/XDR users took 55 days. The predictability of insurance claims was highest among MDR users, reinforcing the reliability of expert-led cybersecurity services.
“This study confirms that the right security investment can significantly reduce financial exposure,” said Adam. “Organizations and insurers can use these insights to prioritize cyber defenses that make a real impact.”
Conducted by Vanson Bourne, the study analyzed 282 claims from 232 organizations across various cybersecurity solutions.
