Hiscox Cyber Readiness Report 2023

Cyber Readiness

The Hiscox Cyber Readiness Report 2022

There are signs firms are responding more decisively to the cyber challenge

The frequency of cyber attacks in Ireland increased by 26% year-on-year – according to the latest Hiscox Cyber Readiness Report; with 49% of businesses saying they suffered a cyber attack in the past 12 months, compared to 39% in the prior year.

Yet while 87% of businesses across the world see cyber as the number one threat to their financial health, Ireland stands alone, with the pandemic remaining the key business concern in contrast to other countries surveyed.

Globally, the seriousness of the cyber threat is not underestimated, with one in five (20%) of businesses across eight countries saying that a cyber attack almost rendered them insolvent – an increase of almost a quarter (24%) compared to the previous year.

However, there is a huge gulf in perception between those who have actually suffered an attack and those who have not.

More than half of cyber attack victims (55%) see cyber as an area of high risk; whereas amongst companies which have not yet suffered an attack, the figure is just 36%.

Now in its sixth year, the Hiscox Cyber Readiness Report surveyed over 5,181 professionals responsible for their company’s cyber security strategy across eight countries: the US, UK, Ireland, Belgium, France, Germany, Spain and the Netherlands, including more than 200 Irish experts.

  • More than three out of five respondents (62%) agree that their business was more vulnerable to an attack as a result of employees working from home. This rose to 69% in companies who employed more than 250 people.
  • Average cyber security spending per company is up 60% in the past year to €4.8 million; an increase of 250% since 2019.
  • Adoption of cyber insurance is highest in the financial services industry, where 74% of companies have cover, either through a standalone policy or as part of a wider insurance policy.
  • Irish businesses paid out ransoms more regularly than the rest, with 25% paying five times or more to recover data.
  • Irish companies reported some of the lowest average ransom costs in the study: €12,600 ransom payments and €9,900 recovery costs. The single largest ransom paid in Ireland in 2021 was €42,693.
  • The most common method of entry for Irish ransomware were unpatched servers (65%) - this was far more common in Ireland than in any other country.

Cyber Insurance

A key takeaway from this year’s report is to make sure companies are cyber ready. With good risk management and appropriate cyber insurance, firms can contain the impact of an attack and limit the damage.

The Cyber Readiness Report 2022 shows that 64% of Irish companies now have cyber insurance as standalone or part of another policy, up from 58% two years ago. Cyber insurance coverage not only protects from financial loss but includes training resources and emergency response tools to reduce the impact of a breach on your bottom line.

Learn how your business stacks up and how you can be more cyber ready by downloading the full report.

At Hiscox, we want to help ensure your business and your clients businesses are cyber ready.

We have introduced two new tools that allows you to assess a firms cyber preparedness and resilience at managing cyber attempts and attacks - The Health Check and Maturity Model.

Assess the business in minutes: Let’s start your Cyber Health Check

Tell us about your business. Then answer seven cyber questions to receive your Cyber Health Check score. Choose the option that comes closest to how your business handles cyber security.

Check my cyber readiness

An in-depth evaluation: The Maturity Model

The Maturity Model offers insurance brokers a robust review of a company’s cyber risk profile.

It allows company’s and brokers to assess and gauge the firms’ strengths in six key cyber security areas, using an in-depth question set.

The result is a gold standard, value-added service, allowing companies to see where they have gaps in their cyber security operations across three key functions – people, process and technology.

Evaluate my cyber readiness

To find out more about the Cyber Readiness Report 2022 or would like to discuss our range of cyber insurance solutions and please contact:

Contact the team
Susanna Donnelly
Development Underwriter