89% of executives plan to expand cyber insurance for technological vulnerabilities: Chubb

Cybersecurity and technological disruption are identified as the top threats to business growth, with over 89% of executives planning to expand their cyber insurance coverage to address increasing technological vulnerabilities, according to a report by Chubb.

The findings come from a Harris Poll survey of 500 business leaders involved in risk decision-making, commissioned by Chubb.

74% of executives at large companies cite cybersecurity as the top growth risk, with 40% reporting that cyber breaches and data leaks have been the most disruptive and financially burdensome man-made threats. These concerns far outweigh risks such as accidents, regulations, social unrest, and hazmat exposures, with no other risk factor mentioned by more than 25%.

Cybersecurity also ranked as the leading geopolitical risk at 60%, with resource scarcity, climate change, political instability, and other risks falling below 40%.

Monitoring cyber incidents is the most widely used risk mitigation tool, with 84% of executives reporting it as either a fully integrated (41%) or regularly used (43%) function in their organisations. Another 14% use it in some situations.

The survey also found that 79% of companies are implementing AI in their risk management processes, though many executives express concerns about AI-related risks, such as deep fakes, with over 50% reporting that their companies have been impacted.

For executives prioritising technology, data integrity (56%) and digital transformation challenges (53%) are top concerns, particularly among middle-market businesses (60%).

Juan Luis Ortega, President of North America Insurance at Chubb, commented, “Chubb’s ‘Risk Decisions 360°’ report provides critical insights into the evolving risk landscape, empowering businesses of all sizes to make informed decisions and achieve sustainable growth.”

The report also revealed that 86% of companies have or plan to adopt business interruption coverage for events like cyberattacks, natural disasters, or supply chain disruptions, with 53% having coverage in place and another third planning to add it in the next 12 months.

Despite this, more than one-third of executives believe their company is not extremely effective at managing the broad range of emerging and evolving risks.

These findings underscore the increasing importance of insurance in mitigating today’s business risks, with 89% of executives planning to expand their cyber insurance coverage to address growing technological vulnerabilities.

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