Cyber Attack Costs Have Risen by 80% for US Businesses, Reveals Hiscox Cyber Readiness Report™ 2022
Atlanta, GA – August 30, 2022 - Hiscox, the international specialist insurer, reports that both the frequency and cost of cyber attacks are rising for US businesses, and the pandemic is continuing to have lasting effects on the cyber security landscape.
The annual Hiscox Cyber Readiness Report™, which gauges businesses’ preparedness to combat cyber incidents and breaches, surveyed over 5,000 professionals responsible for their company’s cyber security from the US, UK, Belgium, France, Germany, the Netherlands, Spain and Ireland. Key findings specific to the more than 900 US professionals surveyed include:
- Cyber attacks are a bigger worry for US businesses than the ‘great reshuffle’: US businesses are more concerned about cyber attacks (46%), than the pandemic (43%), or skills shortages (38%).
- The number of attacks is rising: the survey results indicate that in the past year, there has been a 7% increase in cyber attacks on US businesses. To date, roughly half of all US businesses (47%) have suffered an attack in the past 12 months.
- And each attack is costing businesses more: The median cost of an attack as of 2022 is $18,000, up from $10,000 last year. The US has also borne a generally higher cost from cyberattacks, with 40% of those suffering attacks incurring costs of $25,000 or more. The most common point of entry was a corporate server in the cloud.
- The pandemic has prompted businesses to double their IT spend: Despite remote working nearly halving from 62% of the workforce in 2021, to 39% of the workforce by 2022, total IT spending has risen from $11.5m in 2021, to $24.2m in 2022.
- The US is a global leader in cyber maturity, but is also most likely to pay a ransom: The US had the highest cyber maturity score of 3.05 compared to the average of 2.94. Nonetheless, US companies were the most likely to pay a ransom to recover data, with 84% of companies that experienced a ransomware attack paying up.
- More businesses are considering purchasing a standalone cyber insurance policy: The number of US businesses that have a standalone cyber insurance policy remained stable at 34%, in comparison to the number of businesses without a policy or any plan to purchase one, which dropped from 18% in 2021 to 12% in 2022.
“Despite 61% of survey respondents now being back in the office, businesses are still experiencing a hangover from the pandemic,” said Alannah Paul, Cyber Product Head for Hiscox in the US. “Remote working provided a year-long Christmas for cyber criminals, and we can see the results of their cyber-feast in the increased frequency and cost of attacks. As we move into a new era of hybrid working, we all have an increased responsibility to continue learning, and managing our own cyber security.”
About the Study
Hiscox commissioned Forrester Consulting to gather information about businesses’ cyber activities and readiness. In total, 5,181 professionals responsible for their company's cyber security strategy were surveyed (over 900 each from the USA, UK, France and Germany; more than 400 each from Belgium, Spain and The Netherlands; and more than 200 from the Republic of Ireland). Respondents completed the online survey between 30 November 2021 and 21 January 2022.
We have adopted median rather than mean or average figures and restated prior-year figures in the same terms. Given the extreme variation in the underlying figures between the smallest and largest firms, this provides a more accurate representation of the respondents as a whole.
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 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 for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. In the US, Hiscox small business Insurance is underwritten by Hiscox Insurance Company Inc., a Chicago-based insurance company, or a Hiscox Syndicate at Lloyd’s, London, which is available on a surplus lines basis through licensed surplus lines brokers.
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.
The content provided above is provided for general informational purposes and is not intended, nor shall it be deemed, to be a solicitation of insurance with regard to any particular or specific person or entity.
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