Business Owners Worry about Data as Cyber Attacks and Costs Rise
Hartford, Conn. (Sept. 28, 2017) – More than half of U.S. businesses (53 percent) have experienced a cyber attack in the past year, according to a survey of business executives released today by The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re.
Of those businesses hacked in the previous 12 months, 72 percent spent over $5,000 to investigate each cyber-attack, restore or replace software and hardware, and deal with other consequences, the nationwide study conducted by Zogby Analytics for HSB showed.
“In addition to the rising number of cyber attacks and related costs, businesses are increasingly anxious about protecting their data” said Timothy Zeilman, vice president for HSB, a leading provider of cyber insurance. “Data is what drives a business and the loss or corruption of information can be devastating.”
More than a third of the hacked businesses (38) percent spent more than $50,000 to respond: 10 percent spent $100,000 to $250,000, and seven percent more than $250,000.
Seven in ten executives were concerned that data would be destroyed as a result of a cyber attack and 62 percent were concerned about equipment damage.
The survey results backed up their worries: the most common consequence of cyber attacks was data loss (60 percent), followed by business interruption (55 percent).
Malware (53 percent) and viruses (51 percent) were the most common types of cyber attacks. Businesses and institutions also experienced distributed denial of service (DDoS) attacks (35 percent); ransomware (29 percent); cyber extortion (25 percent) and social engineering (13 percent).
Security experts warn that employees are a weak link in safeguarding information and the business leaders agreed. When asked to identify the biggest risk to cyber security, the respondents cited negligent and disgruntled employees (45 percent) and hackers (37 percent).
Increasingly, businesses are looking for financial protection against cyber attacks. Almost two-thirds of companies (61 percent) purchased or increased their level of cyber insurance coverage over the past year, and 56 percent of them purchased cyber insurance for the first time.
Zogby Analytics was commissioned by Hartford Steam Boiler to survey 403 chief executive, chief information, chief technology, chief operating, chief financial officers and other senior executives in the United States. They represented a variety of businesses and institutions with revenues ranging from under $5 million to more than $200 million. The margin for error was plus or minus 5 percentage points.
About Hartford Steam Boiler
Hartford Steam Boiler (HSB), a member of Munich Re’s Risk Solutions family since 2009, is a leading specialty insurer providing equipment breakdown, other specialty coverages, inspection services and engineering-based risk management that set the standard for excellence worldwide. We focus on clients and partner with them to craft inventive insurance and service solutions to cover existing and emerging risks posed by technological change. Today, as throughout our 150 year history, our mission is to use our engineering knowledge and insights to help clients prevent loss, advance sustainable use of energy resources and build deeper relationships that benefit business, industry, public institutions and consumers. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior). For more information, visit www.hsb.com.
About Zogby Analytics
Zogby Analytics is an international research firm, providing clients with information and knowledge critical for making informed strategic decisions since 1984. The firm conducts multi-phased opinion research with state-of-the-art opinion research capabilities and objective analysis and consultation for banking and financial services institutions, insurance companies, hospitals and medical centers, retailers and developers, religious institutions, cultural organizations, colleges and universities, IT companies and federal agencies.
About Munich Re
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 2016, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €2.6bn. It operates in all lines of insurance, with over 43,000 employees throughout the world. With premium income of around €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 ERGO, one of the leading 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 2016, ERGO posted premium income of €16.0bn. Munich Re’s global investments (excluding insurance-related investments) amounting to €219bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
Source: Munich Re via Business Wire via AdvisenTags: cyber risk, Hartford Steam Boiler, Munich Re