Cyber Poll Finds Risk Managers Not Confident about Resources Dedicated to Combat Hacking
Hartford, CT (June 4, 2015) – Almost 70 percent of businesses experienced at least one hacking incident in the last year, according to a study of business risk managers released today by The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re. Yet more than half (55 percent) don’t believe their company is dedicating enough money or trained and experienced personnel to combat the latest hacking techniques.
“Hackers have evolved and so have their methods of attack,” said Eric Cernak, Cyber Practice Leader for Munich Re. “Businesses are on high alert, but they can do a lot better. Simply reacting to new threats is not enough. Businesses of all sizes need to anticipate hacking trends and deploy the resources necessary to protect their private or sensitive information.”
Of the risk managers polled by HSB, 63 percent represented large enterprises, followed by 30 percent at mid-sized organizations and seven percent at small businesses.
The survey revealed a notable exposure and concern with the use of cloud technology. Loss of confidentiality of information is viewed as the biggest risk (76 percent), followed by service interruption (16 percent) and government intrusion (5 percent).
Concerns about the type of information being breached ranged from personally identifiable information (53 percent) to sensitive corporate information (33 percent) to financial information (14 percent).
When asked about the type of risk management services they would be most interested in deploying to combat cyber risk, risk managers point to intrusion detection/penetration testing (32 percent), employee education programs (25 percent) and encryption (25 percent).
For additional protection, 46 percent say their business has either purchased cyber insurance for the first time or increased its level of coverage in the last year. Thirty-six percent of businesses do not have any level of cyber insurance coverage.
Hartford Steam Boiler’s 2015 Cyber Poll was conducted on-site at the Risk and Insurance Management Society Conference (RIMS) in New Orleans on April 27, 2015. It is intended to represent the sentiments of 102 risk manager attendees who participated through in-person interviews, and represented small (1-99 employees), mid- (100-999 employees) and large-sized (1,000+ employees) businesses in the following industries: manufacturing/industrial; retail; financial services; government/military; medical/healthcare; and education.
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Hartford Steam Boiler (HSB), a member of Munich Re’s Risk Solutions family since 2009, is a leading engineering and technical risk insurer providing equipment breakdown insurance products, other specialty coverages, and related inspection services and engineering consulting. Founded in 1866, HSB’s difference is grounded in extensive technical knowledge with over 50 percent of its staff engineers, inspectors and technical personnel around the globe. We leverage our knowledge to anticipate future risks and develop a range of specialized solutions that enable our clients to build deeper and more profitable customer relationships. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior).
About Munich Re
In the U.S., Munich Re provides access to a full range of property and casualty reinsurance and specialty insurance products through Munich Reinsurance America, Inc., American Modern Insurance Group and Hartford Steam Boiler Group. Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2012, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of &eur;3.2bn on premium income of around &eur;52bn. It operates in all lines of insurance, with around 45,000 employees throughout the world. With premium income of around &eur;28bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2012, ERGO posted premium income of &eur;19bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to &eur;214bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
SOURCE: Munich ReTags: cyber attacks, Hartford Steam Boiler (HSB), survey