Over half of firms report cyber attacks in 2019: Hiscox

61 percent of firms across the US, the UK, Germany, Belgium, France, Spain and the Netherlands have experienced a cyber attack in the past year, up from 45 percent in 2018, a report from Bermuda-headquartered specialist insurer Hiscox has shown.

The median cost for losses associated with cyber incidents has also risen from $229,000 to $369,000 year-on-year.

Hiscox’s ‘Cyber Readiness Report 2019’ surveyed 5,400 professionals from these countries who are responsible for their company’s cybersecurity, and overall found that the cost and frequency of attacks are rising.

Despite these figures, 27 percent of  more than 1,000 US companies surveyed said they have no plans to purchase cyber insurance, and 5 percent are unsure of what cyber insurance is.

"The message that cyber risk is a real threat to businesses of all sizes is sinking in. Companies are increasingly aware of the risks and pouring more resources into cyber protection, and yet, there is still a tremendous gap between awareness of the issue and actually having an effective defense," said Meghan Hannes, cyber product head for Hiscox in the US.

"Many believe that increasing cyber-related spending fully protects a business, but it isn't enough. Businesses must take a holistic approach, ensuring they can properly maximize their investment with appropriate internal protocols, staffing, and employee training, ultimately creating a human firewall as the first line of defense."

53 percent of US respondents reported an attack in the past 12 months, compared to 38 percent last year.

72 percent of  the US companies surveyed plan to increase spending on cyber security in the coming year, although only 11 percent of respondents suggested increasing spending on employee training and culture changes as a result of a cyber security incident - both of which Hiscox has identified as crucial to defend against cyber risks.