Travelers Risk Index: Cyber Threats Are Top Overall Business Concern
September 30 2019 - 8:04AM
Business Wire
The Travelers Companies, Inc. (NYSE: TRV) today announced the
results of the 2019 Travelers Risk Index, which found that cyber
risks are the top concern among businesses of all sizes for the
first time since the survey began in 2014. Of the 1,200 business
leaders who participated in the survey, 55% said they worry some or
a great deal about cyber risks, ahead of medical cost inflation
(54%), employee benefit costs (53%), the ability to attract and
retain talent (46%) and legal liability (44%).
As concerns about cyber threats have grown, a higher percentage
of businesses across nearly every industry reported taking
proactive measures to safeguard against cyber risks — although a
sizable percentage have not implemented such preventive best
practices. The steps taken by respondents include:
- Purchasing a cyber insurance policy (51% of survey
participants, up from 39% last year).
- Creating a business continuity plan in the event of a cyber
attack (47%, up from 38%).
- Taking a cyber risk assessment for themselves (49%, up from
45%) and their vendors (41%, up from 37%).
- Updating computer passwords (74%, up from 71%).
“The Travelers Risk Index shows that more businesses are taking
steps to prevent a cyber event, but it’s still alarming that nearly
half don’t have the proper insurance coverage,” said Tim Francis,
Enterprise Cyber Lead at Travelers. “One cyber attack can put a
company out of business. Taking the threat seriously and
implementing a risk management program that addresses possible
exposures can help a company not only avoid an attack but also
recover from one as quickly as possible.”
Since 2015, the percentage of small business respondents who
have suffered a cyber attack has tripled, from 4% to 12% this year.
Increases are also being reported among medium-sized companies (10%
in 2015 to 20% this year) and large businesses (from 19% to
33%).
“More companies are experiencing cyber attacks,” Francis said.
“The cost of a single breach to a small business can easily reach a
substantial amount of money on top of the time it takes to restore
the business, so protecting a company’s assets with a cyber
insurance policy is critical.”
Other key findings from the 2019 Travelers Risk Index
include:
- Suffering a security breach and a third party gaining
unauthorized access to bank accounts were tied as the biggest
cyber-specific worry among businesses. The third-highest
cyber-specific concern was an extortion or a ransomware attack,
which increased to 52% from 44% in 2018. Lastly, 43% of respondents
said social engineering scams were a concern, up from 36% last
year.
- While there is greater awareness of cyber risks generally, one
in four survey participants didn’t believe their business would
suffer a cyber attack, and thus opted not to purchase a cyber
insurance policy. The top reason for not purchasing a cyber
insurance policy, cited by 31% of respondents, was the
expense.
- Three-fourths of survey participants agreed that having the
proper cyber prevention tools in place is critical to the
well-being of the business, an increase from 69% in 2018.
- Nearly 80% of respondents admitted that it is difficult to keep
up with the ever-changing cyber landscape.
- The percentage who said today’s business environment was more
risky remained at 36%.
Travelers provides a range of coverage options, pre-breach tools
and assessment resources, as well as post-breach services to help
businesses of all sizes prepare and recover if and when a cyber
event occurs.
For more information, visit the 2019 Travelers Risk Index
website. To help business owners better protect against cyber
attacks, the Travelers Institute will bring its Cyber: Prepare,
Prevent, Mitigate, Restore℠ educational series to Portland, Oregon,
on Oct. 24.
About the Survey
Hart Research conducted a national online survey of 1,200
business decision-makers from July 8-19, 2019. The survey was
commissioned by Travelers.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider
of property casualty insurance for auto, home and business. A
component of the Dow Jones Industrial Average, Travelers has
approximately 30,000 employees and generated revenues of
approximately $30 billion in 2018. For more information, visit
www.travelers.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190930005425/en/
Media: Michael Whitmer, 860.277.2010
mwhitmer@travelers.com
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