More studies are exposing the need for brokers to push cyber insurance products to clients and now new research from specialist insurer Hiscox
now reveals that the majority of businesses in the UK, US and Germany are ill-prepared for cyberattacks.
The Hiscox Cyber Readiness Report, which surveyed 3,000 companies in the three countries, shows that 53% of businesses are considered “novices” in dealing with cyberattacks while only 30% are ranked “experts” in cybersecurity.
“With fewer than a third of businesses qualified as ‘expert’, our study reveals a worrying absence of cyber security readiness among business consumers,” said Hiscox Insurance chief executive Steve Langan.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
A majority or 57% of firms experienced a cyber-attack in the past year, with large companies as the most frequent targets. Nearly half, or 46%, of businesses took two days or more to restore operations.
According to the study, 40% of firms say they have taken out cyber insurance. Hiscox said the take-up figure may reflect confusion over what exactly constitutes cyber insurance cover, with some companies believing they are protected under their existing coverage.
Cyber insurance reception remains heavily skewed to the US, with 55% of companies saying they have taken out insurance, compared to 36% in the UK and 30% in Germany.
In the UK, 45% of companies believe that a cyber insurance policy is not relevant for them. About 30% have no plans to adopt cyber insurance in the next 12 months. Some businesses think that cyber insurance policies are too complicated – they don’t understand what would be covered.
The rise of ransomware: What should brokers know?
Most feared business risks revealed
Lloyd’s predicts surge in cyber insurance uptake in 2017