Zero Trust Security Reduces Cyber Insurance Claims, Preventing up to $465 Billion Annually in Global Economic Loss from Cyber Attacks

Rhea-AI Summary

Zscaler (NASDAQ: ZS) has released a report analyzing cyber insurance claims data from Marsh McLennan's Cyber Risk Intelligence Center, revealing that implementing zero trust security architecture could potentially reduce cyber losses by up to 31%, translating to $465 billion in prevented global annual economic losses. The study found that North America faced 4x more cyber incidents than Europe, though European events were more preventable through zero trust (41% vs 31%). Companies with over $1B in annual revenue could benefit most, with 60% of attacks deemed mitigable. The research noted a 126% year-over-year increase in ransomware incidents, highlighting the growing importance of zero trust implementation. Zscaler's Risk360, part of their Zero Trust Exchange platform, helps organizations quantify cyber risks and streamline insurance applications using data from over 50 million devices.

Positive

• Implementation of zero trust architecture could prevent up to $465 billion in annual global cyber losses
• Zero trust could potentially reduce cyber losses by up to 31% annually
• Companies with over $1B revenue could prevent 60% of attacks through zero trust implementation
• Some Zscaler customers are receiving more favorable insurance policies due to zero trust adoption

Negative

• North America experienced 4x more cyber incidents than Europe over the past eight years
• Ransomware incidents increased by 126% in a single year

News Market Reaction

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-0.64% News Effect

On the day this news was published, ZS declined 0.64%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Research From Marsh Mclennan’s Cyber Risk Intelligence Center Suggests That Implementation of a Zero Trust Platform Can Reduce Associated Insurance Claims and Losses Across Industries

• Nearly a third of the cyber events encompassed by the study potentially could have been prevented if zero trust was deployed, assuming proper cyber security hygiene was also applied
• Companies can limit the risk of a damaging cyber incident by deploying zero trust, potentially reducing insured cyber loss by up to 31% annually

SAN JOSE, Calif., June 10, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today published a special report, examining the number of cyber incident insurance claims that potentially could have been avoided if the victim organization had deployed a zero trust architecture. Using the Marsh McLennan Cyber Risk Intelligence Center’s proprietary cyber losses dataset from the past eight-years, which collates cyber incidents from past claims, researchers estimated that overall cyber losses could have been potentially reduced by up to 31% had the organizations widely deployed zero trust security. This adds up to a projected reduction of up to $465 billion in global annual total economic losses.

The analysis showed that North America experienced significantly more cyber incidents than the rest of the world during the past eight-year period, experiencing almost four times the amount of European cyber incidents. However, of the total incidents encompassed by the study, the percentage of attacks that potentially could have been mitigated by zero trust was greater internationally, with 41% of European events assessed as potentially preventable through zero trust architecture compared to 31% of events in North America.

Scott Stransky, Managing Director and Head of the Marsh McLennan Cyber Risk Intelligence Center, said: “Being able to quantify the cost associated with the lack of zero trust implementation has not been previously investigated. The figure demonstrates the value and benefit of such controls, and highlights the potential benefits of greater cyber hygiene across industries.”

The report highlighted that the rise in ransomware incidents, which increased 126% in a single year, has elevated the proportion of events that zero trust could have mitigated globally. From a size perspective, companies with over $1 billion in annual revenue stood to benefit the most from zero trust implementation, with 60% of attacks being deemed mitigable.

Stephen Singh, Global Vice President, M&A/Divestiture and Cyber Risk, Zscaler, said: “This report underscores the importance of recognizing Zero Trust as a fundamental cybersecurity control that fortifies cyber hygiene. With the external attack surface identified as a key predictor of potential breaches, adopting Zero Trust and phasing out outdated, high-risk technologies such as firewalls and VPNs, shows a dramatic reduction in risk exposure.”

Zero trust significantly increases the security of enterprise IT infrastructure and limits the ability for attackers to cause widespread and costly damage, by requiring continuous verification of every user, application, and device accessing an enterprise.

Darin Hurd, CISO at Guaranteed Rates, commented: "We now have independent validation that zero trust offers significant benefits for cyber security practitioners responsible for mitigating business risk - companies that prioritize zero trust investments gain a significant edge as cyber defenders.”

Some Zscaler customers are already receiving more favorable policies when partnering with cyber insurance underwriters, using Zscaler to accurately quantify business risk. Risk360, a part of the Zscaler Zero Trust Exchange^TM security platform, is a powerful cyber risk quantification service that streamlines cyber insurance applications and renewals.

Built on Zscaler's powerful Data Fabric for Security, Risk 360 provides organizations with a comprehensive and accurate cyber risk profile. With more than 50 million devices using Zscaler agents to collect and share telemetry, the platform provides in-depth visibility across an IT estate, enabling customers to share their zero trust adoption during the underwriting process.

Download the full version of the special report now to dive further into the data.

About Zscaler

Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform.

Media Contact
Nick Gonzalez
Sr. Manager, Media Relations
press@zscaler.com

FAQ

How much could zero trust security save companies in cyber losses according to Zscaler's study?

According to the study, implementing zero trust security architecture could reduce cyber losses by up to 31%, potentially preventing $465 billion in global annual economic losses.

What is the difference in cyber incidents between North America and Europe according to the Zscaler report?

North America experienced almost four times more cyber incidents than Europe, though European events were more preventable through zero trust (41% vs 31% in North America).

Which companies benefit most from zero trust implementation according to the ZS study?

Companies with over $1 billion in annual revenue stand to benefit the most, with 60% of attacks being deemed mitigable through zero trust implementation.

How much did ransomware incidents increase according to Zscaler's report?

Ransomware incidents increased by 126% in a single year, elevating the proportion of events that zero trust could have mitigated globally.

What is Zscaler's Risk360 and how does it help with cyber insurance?

Risk360 is part of Zscaler's Zero Trust Exchange platform that helps quantify cyber risks and streamline insurance applications using data from over 50 million devices.