- The cost of combating cyberthreats has soared the past five years, as median IT security budgets more than tripled to $5.3 million in 2022, compared with $1.4 million in 2018, according to a report by Hiscox.
- More businesses are grappling with cyber incidents today compared to previous years. About half of all businesses suffered a breach or attack in 2022, versus 39% in 2020.
- The financial services and technology, media and telecom industries (TMT) suffered at least one attack per year for three consecutive years, the report found.
The report highlights the growing risk cyberattacks pose to businesses across the globe, as well as the increased financial toll these attacks are having on corporate finances.
Companies are spending millions of dollars to protect their data and operations against sophisticated attacks, the survey found.
The insurance industry is encountering additional pressures to protect companies against increasingly expensive disruptions and data loss, which places added pressure on the industry to protect its own profitability against potentially catastrophic business claims.
“Cyber risk has risen to the same strategic level as traditional financial and operational risks, thanks to a growing realization by business that the impact can be just as severe,” Alana Muir, head of cyber at Hiscox, said in a statement.
“While there has been some fluctuation over the years, cyberattacks are on the rise, so the increased focus and investment from businesses to minimize damage to their brand, operations and customers is positive.”
The report is based on a survey of more than 5,100 executives, IT managers, department heads and other executives across the U.K., U.S., France, Germany, Belgium, Spain, Ireland and the Netherlands.