27%
Cite cybercrime risk as their top area of concern (down from 34% in 2021).
AI and new technologies distract businesses as cybercrime risk begins to intensify.
Our research is showing that a sense of ‘normalisation’ around cybersecurity risks is taking hold in boardrooms across the globe, and cyber risk is dropping down their risk agenda.
At a time when the economic impacts of cybercrime continue to escalate, cyber criminals splintered by the War in Ukraine are beginning to regroup and the rise of AI tools is generating endless unknown risks, can business leaders afford to let their guard down?
Cite cybercrime risk as their top area of concern (down from 34% in 2021).
Feel very or moderately prepared for a cyber-attack down from 80% in 2022.
Rank tech obsolescence and the threat of new tech as their biggest concern.
Rank intellectual property (IP) theft as their primary concern up from just 11% in 2021.
From the emergence of artificial intelligence (AI) to more sophisticated forms of ransomware, a myriad of cyber risks and challenges are now stacking up in the in-trays of executives responsible for managing these risks.
Paul Bantick, Global Head of Cyber Risks, Beazley
Technology and cyber risks impact firms in equal measure:
Boardroom perception of cyber risk falls sharply from the pandemic years
Ransomware attacks are here to stay, despite a temporary decline after Russia’s invasion of Ukraine – cyber gangs are now regrouping and looking to recoup lost profits.
Smaller businesses with limited cybersecurity resources – often SMEs – serve as a training ground for new cyber criminals to learn their trade as cybercrime gang activity rebounds. Where once cyber hackers took weeks to gain access to a network, now it is often only hours.
Small businesses believe that their cyber risk will fall in the future. This perception seems to rely on SMEs evolving their businesses while cybercriminal’s approaches remain static, Unfortunately, this is not the case. That’s why defence in depth cyber strategy is so important.Ian FantozziCEO - Beazley Digital
New avenues of attack for cyber criminals are emerging. The innovations that AI and machine learning will bring to the global economy are now front of mind for business leaders. However, whilst AI’s transformative potential is undeniable, it brings a new set of cyber challenges, potentially enabling threat actors to operate at a greater scale or offer novice hackers easy access to sophisticated code targeted at specific organisations.
It is incumbent on insurers and brokers, who play a key role in highlighting the threat to businesses and the positive impact of defence in depth security, to ensure firms do not become desensitised to the cyber risk and expose themselves to ever more effective cyber criminals.
The evolution of technology is making more and more businesses feel exposed. Insurers must ensure that they are evolving as partners. That we are supporting businesses as they embrace new innovations, jolting them from their reverie when they believe a clear threat has dissipated and working to create new solutions as risks compound and their potential impact grows.
As we enter the second half of 2023, the cyber claims data in our Cyber Services Snapshot continues to show a steady number of ransomware incidents, with data exfiltration a key component in nearly 90% of claims.
Cybersecurity experts have been locked in a battle with hackers for decades. It is a technological arms race.
The industrial revolution saw humanity create machines that could replicate and enhance human effort. Machines replaced muscles and the world’s productive capabilities expanded exponentially. Artificial intelligence (AI) holds the same potential.
Russia’s invasion of Ukraine is providing the insurance market with a demonstration of how warfare has evolved.
Many generative-AI platforms are trained on insights from a range of data sources including pre-published information on the internet and beyond. By their nature, they are creating content, advice, and material that is likely to be generated from multiple sources.
Maritime businesses are exposed to the same enterprise cyber risks which every business sector now has to grapple with. They are threatened with data breaches, ransomware and wiperware attacks by cybercriminals who are constantly evolving their modes of attack and their targets.