Cyber attacks mount but readiness levels wane

Global corporate defences against cyber attacks have shown no improvement despite the losses from such incidents soaring, according to new findings from insurance giant Hiscox.

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More than three out of five firms across seven countries reported one or more attacks in the past 12 months, but the proportion achieving top scores for their cyber security readiness was marginally lower year-on-year.

The Hiscox Cyber Readiness Report 2019, which surveyed a representative sample of private and public sector organisations in the US, UK, Belgium, France, Germany, Spain and the Netherlands, found that 10 per cent achieved high enough marks in cyber security strategy and execution to qualify as cyber security experts.

"Where hackers formerly focused on larger companies, small and medium-sized firms now look equally vulnerable. The cyber threat has become the unavoidable cost of doing business today," warned Gareth Wharton, Hiscox Cyber boss.

He said: "The one positive is that we see more firms taking a structured approach to the problem, with a defined role for managing cyber strategy and an increased readiness to transfer the risk to an insurer by way of a standalone cyber insurance policy."

Among firms reporting attacks, average losses associated with all cyber incidents have risen from $229,000 (£176,000) last year to $369,000, marking a 61 per cent increase. German firms suffered the most, with one reporting a cost for all incidents of $48m.

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While larger firms are still the most likely to suffer a cyber attack, the proportion of small firms (defined as those with less than 50 employees) reporting an incident is up from 33 per cent to 47 per cent.