One in five UK businesses have experienced cyber attacks in the last 12 months, according to the findings of a survey by the British Chambers of Commerce (BCC) released today.
Big businesses were found to be far more likely to be victims of attacks than their smaller counterparts, with 42% of companies with more than 100 staff being targeted, in comparison with 18% of firms with fewer than 99 employees.
It was also found that only a quarter of businesses have cyber security accreditations in place, despite 21% believing the threat of attacks is preventing their company from growing.
BCC director-general, Dr Adam Marshall, said: “Cyber-attacks risk companies’ finances, confidence and reputation, with victims reporting not only monetary losses but costs from disruption to their business and productivity.
“While firms of all sizes – from major corporations to one-man operations – fall prey to attacks, our evidence shows that large companies are more likely to experience them.”
These findings backup government statistics, released today, which reveal that nearly seven in ten large companies identified a cyber breach or attack in the past year.
They show that the average cost to large businesses of all breaches over the period was £20,000, but in some cases reached into the millions, with those holding electronic personal data on customers much more likely to be targeted.
The most common breaches or attacks were via fraudulent emails, followed by viruses and malware, with the size of the threat found to be growing.
“Firms need to be proactive about protecting themselves from cyber-attacks. Accreditations can help businesses assess their own IT infrastructure, defend against cyber-security breaches and mitigate the damage caused by an attack,” Marshall continued.
“It can also increase confidence among the businesses and clients who they engage with online.”
In addition, all businesses that use personal data will have to ensure they are compliant with new General Data Protection Regulation legislation which comes into effect in May next year.
“Firms that don’t adopt the appropriate protections leave themselves open to tough penalties,” Marshall added.
Just 14% of motor insurers believe their organisation is “very prepared” to manage the risks presented by technological change, and only 18% think the industry is fully ready.
25 July 2017
Worldwide InsurTech investment increased 248% in the second quarter of this year to reach $985m (£756m), according to new report by Willis Towers Watson (WLTW).
24 July 2017
Emerging technologies like data analytics will enable global businesses to cut the cost of providing benefits to staff, according to new research from MAXIS Global Benefits Network.
21 July 2017
Why InsurTech? A Pressured Insurance Value Chain
By Andrew Sagon, Andrew Johnston and Matthew Wong
InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.
Nimbleness and agility will unlock potential
By Elinor Friedman, Andrew Harley and Klayton Southwood
Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.
Driven by technology, toolkits and talent
By Claudine Modlin and Graham Wright
Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.
Risk transfer is part of a comprehensive solution
By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood
Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.