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HSB cyber survey finds 90 percent of businesses report hacking incidents
Almost one-third of companies still lack cyber insurance coverage
HSB"s latest cyber survey of risk managers shows the number of hacking incidents increased 21 percent in the past year as nine of ten companies experienced at least one incident. The study also found that almost one-third still lack cyber insurance coverage.
Hackers are relentless
"Hackers are even more relentless," said Eric Cernak, cyber practice leader for Munich Re. "Sixty-four percent of risk managers say they have experienced more than six hacking incidents in the last year - up from 32 percent in 2015. U.S. businesses are under constant assault."
Click here for charts highlighting key findings of the study.
IoT devices are a security concern
The survey conducted at the 2016 Risk and Insurance Management Society (RIMS) conference found company risk managers are worried about the safety and security of Internet of Things (IoT) devices, with only 28 percent saying they are safe for business use. Despite these concerns, more than half (56 percent) of the businesses implemented or plan to implement such devices.
Hackers are always looking for weak spots
"As businesses use IoT devices to improve productivity and efficiency, they must think about the security costs," said Cernak. "Hackers are always looking for ways to steal confidential data that can be used for identity theft and fraud. It is important to control security features on IoT devices and monitor employee use."
Confidential information is a big target
The primary concern about cyber technology was the loss of confidential information (44 percent); government intrusion was listed second (27 percent).
Encryption helps prevent attacks
When asked about the risk management services their company has deployed to help prevent data breaches and computer attacks, most pointed to encryption (44 percent, up from 25 percent in 2015). Intrusion detection/penetration testing (28 percent) was down from 32 percent.
Some think cyber insurance is too complicated
Half of the risk managers said their company has either purchased cyber insurance for the first time or increased its level of coverage in the last year. That was up four percent from 2015. Yet, 30 percent of business still don't have any level of cyber insurance. The primary reason: they think the coverage is too complicated.
HSB's cyber and data coverage is easy and affordable
HSB offers a suite of coverages to help protect your clients from cyber exposures. HSB Total Cyber™ provides cyber, data breach and identity theft coverages for mid-sized businesses. And you can also bundle our data breach and identity theft coverages with HSB TechAdvantage™ equipment breakdown insurance for small to medium-size insureds.
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