67% (UK: 70%) of organisations have experienced more cyber incidents in the past 12 months than the previous year.
47% (UK: 46%) of organisations had greater difficulty attracting new customers following a cyber attack; 43% (UK: 40%) lost customers; and 38% (UK: 37%) experienced bad publicity for their business.
London, UK (24 October 2024): According to the latest research from Hiscox in its annual Cyber Readiness Report, two-thirds (Global: 67%, UK 70%) of organisations have experienced more cyber incidents in the past 12 months than the previous year. With cyber attacks on the rise, business reputation and brand trust are becoming increasingly at risk.
Among the businesses impacted by cyber attacks, almost half (Global 47%, UK: 46%) report considerable challenges in attracting new customers, compared to 20% the previous year. This was closely followed by loss of existing customers at 43% (2023: 21%), bad publicity for the company at 38% (2023: 25%), and loss of business partners at 21% (2023: 16%).
Concerns over reputational damage are also influencing businesses’ decisions to make ransomware payments. Over the past 12 months, the top three reasons organisations paid ransom were: 1) to protect their customer data, 2) to protect their reputation, and 3) to recover their data because they did not have any back-ups. Unfortunately, despite these efforts, paying a ransom did not guarantee the safe return of information, with only 18% of businesses managing to fully recover their data.
Eddie Lamb, Chief Information and Security Officer at Hiscox, commented: “In today’s business environment, protecting the reputation of any business is just as critical as safeguarding the physical assets. Businesses will spend not only years but also thousands if not millions of pounds building their reputation, only to see it destroyed in minutes following a cyber attack. It is vital that businesses continue to foster an environment where cyber education is a continuous process, ensuring every member of the organisation understands the critical role they play in maintaining cyber security.”
The adoption of new technology is also contributing to the rise in cyber attacks. As businesses start to introduce new technologies at a rapid pace, the vulnerabilities they face also increase. Seven in 10 of the businesses surveyed (Global: 70%, UK: 70%) said they have already integrated Generative AI (GenAI) into their daily business activities, with over half (Global: 56%, UK: 57%) believing it will significantly impact their cyber security risk profile. Despite this, many businesses are underprepared: 34% (UK: 37%) admit that their cyber security measures are compromised due to a lack of expertise in managing the risks associated with emerging technologies.
Businesses are increasingly recognising the link between cyber security and innovation. A quarter (Global: 26%, UK: 28%) of businesses identify the role of cyber risk management in supporting innovation as one of the main drivers of their cyber risk management plan.
Eddie continued: “Businesses need to see technological innovation and cyber security as complementary, rather than conflicting, forces. Business leaders will need to continue to invest in attracting the right expertise to manage emerging technology risks if they are to not just survive but thrive in a world of expanding technologies with their reputations intact.”
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Notes to Editors:
*Hiscox Cyber Readiness Report methodology
Hiscox, in partnership with Man Bites Dog, conducted an opinion research study among 2,150 professionals responsible for their company’s cyber security strategy. This included 400 interviewees from the USA and 250 from each of the following countries: the UK, the Republic of Ireland, France, Germany, Spain, Belgium and the Netherlands. The interviews were conducted between 12 August and 2 September 2024.
This report includes comparisons to previous years’ studies, mainly the 2023 Cyber Readiness Report. The 2023 sample of 5,005 professionals included over 900 each from the USA, the UK, France and Germany; over 400 from Spain; and 200-plus from Belgium, the Netherlands and the Republic of Ireland.
The 2024 Cyber Readiness Report is based on a more specialised research sample consisting of business leaders and IT decision-makers. Respondents also included a larger proportion of large organisations (1,000+ employees) than in previous years.
Hiscox Cyber Readiness Report was first launched in 2016.
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,000 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
