Business Wire September 30, 2019
HARTFORD,
Conn.--(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.
View
source version on businesswire.com:
https://www.businesswire.com/news/home/20190930005425/en/
Media:
Michael Whitmer, 860.277.2010
mwhitmer@travelers.com
Michael Whitmer, 860.277.2010
mwhitmer@travelers.com
Source:
The Travelers Companies, Inc.
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