On December 15, Zurich Insurance Group released its "Q4 Global SME Cyber Security Risk Survey Report" (hereinafter referred to as the "Report"). The Report shows that risks arising from cybercrime are receiving growing attention from small and medium-sized enterprises (SMEs), and this risk has given rise to a new line of business: cybersecurity insurance. Premiums in the global integrated security and privacy protection insurance market are expected to reach USD 3 billion.
According to the Report, 10% of SMEs believe they are too small to become victims of cybercrime, whereas in 2015 as many as 17% of SMEs held a similar view. This proportion has fallen by nearly half since last year. Only 5% of SMEs are confident that they have adequate and advanced IT measures in place to defend against internet crime.
The survey gathered feedback from as many as 2,600 executives and managers of SMEs across 13 countries in Europe, the Americas and the Asia-Pacific region. The results show that among the various consequences of cybercrime, theft of customer data (27%) and reputational damage (20%) are their greatest concerns. Other risks, such as theft of funds/deposits (15%), business interruption (15%) and malicious identity theft (12%), are considered potentially the most damaging consequences of cybercrime.
Lori Bailey, Global Head of Special Risks at Zurich Insurance, said that with numerous high-profile cybersecurity breaches reported in the media over the past year, it is no surprise that risk awareness among SMEs has risen rapidly; this also indicates that most SMEs have not adopted appropriate and comprehensive protection against cybercrime.
According to Verizon's 2016 statistics, 3,141 data breaches and 64,199 cybersecurity incidents were confirmed worldwide, of which about 85% were caused by external factors (hackers, malware, etc.), and 77% of data breaches involved insiders; in terms of volume, the financial sector was the hardest hit. Home Depot and JPMorgan Chase have both suffered data breaches due to cybersecurity issues, resulting in huge losses.
Mao Liang, Director of Financial Lines and Surety at Zurich Insurance, told reporters that as SMEs worldwide gradually strengthen their awareness of cyber risk prevention, market demand for internet security insurance is rising year by year. For the integrated security and privacy protection insurance market, global premiums are expected to reach USD 3 billion.
The Report recommends that, as insurance and risk management companies, insurers should continue to commit to identifying risks and providing customized solutions to meet customer needs, while effectively combating internet crime and enhancing corporate resilience.
Source: Sina