Cyber-related ransomware and business interruption top concerns of risk managers
The highest-ever percentage of insurance buyers—nearly 80 percent—carry some level of cyber insurance and 55 percent of respondents with cyber coverage have a stand-alone policy, according to the 10th annual Advisen cyber survey of corporate risk managers and insurance buyers released by Zurich North America Insurance and Advisen.
The take-up rate for cyber insurance has steadily climbed since 2011, the first year of the survey, when just 34 percent of respondents bought some type of cyber coverage.
The 2020 survey found that business interruption is viewed as the worst outcome of a ransomware event by 43 percent of respondents; reputational harm was cited as the second-worst outcome by 29 percent, and other outcomes such as loss of data (15 percent) and loss of funds/paying the ransomware (11 percent) were viewed as far less impactful.
Sixty percent of respondents feel either “extremely prepared” or “prepared” to respond to a ransomware event, while 33 percent feel “somewhat prepared.”
Just over a third (35 percent) of respondents provide annual training for employees on cyber risks, while 24 percent conduct quarterly trainings.
Similarly, 30 percent of respondents assess their company’s exposure to cyber risks only on an annual basis, indicating potential gaps in security.
Eighty-one percent of respondents have not changed their cybersecurity spend, despite financial constraints due to COVID-19. Last year’s survey revealed boosting cybersecurity budgets as a priority and the lack of change amid the pandemic marks a positive sign.
“Unprecedented change in the world requires us to think differently and act with agility. This survey reveals that customer expectations are changing as their level sophistication about cyber risks have grown,” said Michelle Chia, head of professional liability and cyber for Zurich North America.
“Risk managers increasingly are connecting the dots between high-profile cyber attacks, business interruption, and reputational risk—and they’re looking for coverage that protects their businesses at the right price.”
