Cyber threats dominate concerns for Canadian businesses

Cyber threats dominate concerns for Canadian businesses | Insurance Business Canada

Cyber

Cyber threats dominate concerns for Canadian businesses

New index shows heightened concerns

Cyber

By
Terry Gangcuangco

The Travelers Companies has released its 2024 Travelers Canada Risk Index, revealing that cyber threats remain the top concern for Canadian business leaders for the second consecutive year.

The annual survey, launched in 2023, found that 65% of respondents this year worry about cyber risks, marking an increase from 61% previously. Following closely behind in the ranking of 2024 concerns were economic uncertainty (62%), the global economy’s influence on their operations (58%), financial challenges (57%), and supply chain disruptions (56%).

Michael Trendler (pictured), managing director of specialty insurance at Travelers Canada, commented: “As technology continues to advance, cyber threats continue to grow. This year’s survey highlights the importance of preventive measures within organizations, including investing in the right cyber insurance coverage and educating employees on how best to protect information.”

Meanwhile, despite the heightened concern around cyber risks, there has been a decline in companies purchasing cyber insurance. Two-thirds (66%) of business leaders reported having cyber insurance, down from 72% the previous year. Among those without coverage, 32% cited the cost as a prohibitive factor, while 29% believed their current protective measures were sufficient.

The survey also found that nearly 30% of businesses have experienced a cyber incident. Medium-sized companies (36%) were more likely to be impacted compared to smaller businesses (20%). Alarmingly, 19% of respondents admitted their companies had experienced a cyber event but chose not to report it, largely out of concern for their brand reputation or the risk of exposing sensitive intellectual property.

The most common type of attack involved security breaches, with 36% of companies reporting unauthorized access to their systems.

Notably, a significant 84% of business leaders agreed that having strong cyber controls is essential for protecting their operations. The top cyber-specific worry this year shifted to unauthorized access to company banking accounts or financial control systems, with 60% of respondents identifying it as a concern – up from sixth place in 2023.

Other cybersecurity worries included the potential compromise or theft of client records (59%), unauthorized access to computer systems (59%), and system glitches causing outages (58%).

The 2024 Travelers Canada Risk Index is based on an online survey conducted by Hart Research, which gathered responses from 1,000 Canadian business leaders in August.

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