Cyber risks are the main concern of 62% of companies
The Travelers’ annual cyber threat survey found that security breaches and unauthorized access are a concern for 57% of companies, followed by ransomware (54%), unsafe computer practices by employees (53%), and system failures (53%). These are the key fears of the interviewed respondents.
A record 62% of respondents named cyber risks as their top concern. Next, health care cost inflation was 59%, holding the top spot in 2023.
Other top concerns include rising employee benefits costs (59%), economic uncertainty (59%) and attracting and retaining talent (54%).
Key aspects of the study
Increasing employee benefits costs, economic uncertainty, and attracting and retaining talent were also top concerns, each cited by 59%, 59%, and 54% of companies, respectively.
Adoption of cyber insurance has increased, with 65% of companies now covered, up from 60% last year and 39% in 2018.
Spread of cyber insurance across business sizes: Small Business: 41% (up from 34%), Medium Business: 77% (up from 74%), Large Business: 78% (up from 72%)
The number of cyber incidents reported by companies increased to 24% in 2024 from 23% in 2023, continuing an eight-year trend of annual growth.
According to analysts cited by Beinsure, one important solution to mitigating cyber threats is expanding cyber insurance coverage. Despite the risks, nearly 30% of the more than 1,200 respondents said their companies do not have a cyber insurance policy.
However, the percentage of companies with cyber coverage increased to 65%, up from 60% last year and significantly higher than 39% in 2018.
The growth of cyber insurance has been seen in companies of all sizes. Small businesses increased insurance coverage to 41% from 34%. The share of medium-sized companies increased from 74% to 77%, and the share of large businesses increased to 78%, compared to 72% in 2023.
This growth is driven by an increase in cyber incidents, with 24% of companies reporting a system breach or cyber incident in 2024, up from 23% the previous year.
For 8 of the last 9 years, the number of companies reporting cyber incidents has increased annually.
Top cyber concerns for businesses include security breaches and unauthorized access to financial accounts or control systems, with 57% of respondents citing these risks.
Followed by ransomware at 54%, a notable jump from 9th place in 2023. Other concerns relate to employees putting systems at risk through unsafe computing practices (53%) and system failures (53%).
Tim Francis, Head of Enterprise Cyber at Travellers, noted that businesses are increasingly aware of cyber threats and the serious financial and operational damage that cyber attacks can cause.
Despite the growing uptake of cyber insurance, he expressed concern that many companies still choose not to buy insurance cover, even when fully aware of the risks.
The Travelers gathers information from business insurance decision makers at US companies in a variety of industries. | Forinsurer