Cyber risk was the third highest risk, following high taxation and loss of customers/cancelled orders, and the highest risk in the political, crime and security risk category. This was a significant move up the list from the last time the report was completed, in 2011.
It appears that businesses across the world have encountered a partial reality check about the degree of cyber risk. Their sense of preparedness to deal with the level of risk, however, still appears remarkably complacent. Against all the evidence of the past two years, businesses believe they are slightly more able to deal with the risk …. As in 2011, we must ask again if, despite their escalating spend on cyber security, businesses are actually spending money on the right things? Cyber insurance specialists are offering increasingly integrated cyber products, including those that provide cover for data breach costs, forensic analysis and crisis public relations services in one package. While these products are highly effective in an emergency, spending money upfront on risk management – and ensuring recommendations are implemented throughout a company – might go a long way to preventing a cyber disaster before it starts.
As we have noted previously, Cyber Risk insurance coverage is an inexpensive protection for small and medium sized business. Cyber Risk insurance provides protection from the risks associated with the use of technology, including data breaches, but policy forms are not all the same. As a wholesale broker, we provide Cyber Risk insurance to all types of organizations through retail insurance agents and brokers.