Hiscox reports two-thirds of organisations face increased cyber incidents

Specialist insurer Hiscox recently released findings from their annual Cyber Readiness Report, which reveals that two-thirds of organisations (67% globally and 70% in the UK) have faced more cyber incidents in the past year compared to the previous year.

As cyber attacks continue to increase, the reputation and trust in businesses are increasingly jeopardised.

Nearly half of the businesses affected by cyber attacks—47% globally and 46% in the UK—report significant difficulties in attracting new customers, up from just 20% last year.

Additionally, 43% of these organisations have lost existing customers (compared to 21% in 2023), 38% have suffered from negative publicity (up from 25% in 2023), and 21% have lost business partners (increased from 16% in 2023).

Concerns regarding reputational harm are also impacting companies’ choices about ransomware payments. Over the past year, organisations have primarily opted to pay ransom to protect customer data, safeguard their reputation, and recover data due to a lack of backups.

However, paying a ransom does not guarantee data recovery, as only 18% of businesses successfully retrieved all their information.

Eddie Lamb, Chief Information and Security Officer at Hiscox, said: “In today’s business environment, protecting the reputation of any business is just as critical as safeguarding the physical assets. Businesses will spend not only years but also thousands if not millions of pounds building their reputation, only to see it destroyed in minutes following a cyber attack.”

He continued: “It is vital that businesses continue to foster an environment where cyber education is a continuous process, ensuring every member of the organisation understands the critical role they play in maintaining cyber security.”

The adoption of new technology is also playing a significant role in the rise of cyber attacks. As businesses rapidly introduce innovative solutions, their exposure to vulnerabilities increases.

Seven out of ten businesses surveyed (70% globally and 70% in the UK) report that they have already integrated Generative AI (GenAI) into their daily operations.

Over half of these organisations (56% globally and 57% in the UK) believe this technology will greatly impact their cyber security risk profile.

However, many companies find themselves underprepared, with 34% (37% in the UK) acknowledging that their cyber security measures are compromised due to a lack of expertise in managing the risks associated with emerging technologies.

Moreover, businesses are increasingly recognising the connection between cyber security and innovation. A quarter of the organisations surveyed (26% globally and 28% in the UK) view effective cyber risk management as a key factor in supporting innovation, which has become a significant driver in shaping their cyber risk management strategies.

Lamb further added: “Businesses need to see technological innovation and cyber security as complementary, rather than conflicting, forces. Business leaders will need to continue to invest in attracting the right expertise to manage emerging technology risks if they are to not just survive but thrive in a world of expanding technologies with their reputations intact.”

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