Accelerated digitalisation opening new risks for businesses – Chubb

The COVID-19 pandemic has accelerated digitalisation initiatives globally, which can expose small and medium businesses to the various emerging risks of digital transformation, according to a report by Chubb titled Digital Business Accelerated.

The global insurance giant partnered with Accenture to survey 1,350 small and medium business respondents across nine international markets. The study found four mega-trends that impact businesses pursuing digital transformation, namely:

• Navigating digital-first communications – according to the report, around half of the respondents are focusing on seamless on-demand delivery of products and prioritising tailored products and services that meet the needs of multiple generations.
• Harnessing the power of data – businesses’ top priorities for the next three years include adopting artificial intelligence technology, cloud and big data.
• Supporting a transformed workforce – businesses are seeking to develop new technology capabilities and skills among their employees, amid intensified competition in hiring and retaining workers with the relevant skills.
• Thriving in the global market – a sizeable portion of businesses think internationally, with 41% prioritising offering products or services overseas.

In Hong Kong, 82% of surveyed businesses see digital transformation as critical to business success. This is supported by the findings of AmCham Hong Kong’s 2021 Business Outlook Survey, which revealed that more than half (55%) of businesses plan to increase their digital transformation expenditure in 2021.

Also, many believe that building trust and a sound digital relationship with customers is essential.

“The global pandemic has forced many businesses to accelerate their dependence on digital and pivot their operations," said Doug White, president of Chubb's general insurance business in Hong Kong & Macau. "Digital has changed from being a driver for growth and/or efficiency to becoming a lifeline for all types of businesses. Yet digitalisation comes with significant risks like increased cyber security threats to additional liability challenges. Chubb will work alongside with SMEs to provide the advice and protection they will need to build resilient digital businesses.”