UK business suffers £44bn of cyber losses in last five years

Howden says basic cybersecurity measures could save the average UK company £3.5m over the next decade, as its research finds that half (52%) of businesses in the country have suffered a cyberattack over last five years, at a cost of £44bn. The research, partly based on a survey of more than 900 IT decision makers, reveals that companies with an annual revenue of more £100m were the most targeted group. Nearly three-quarters (74%) of firms in this group have suffered a cyberattack during the last five years. But threat levels are elevated across all businesses, with half (49%) of SMEs with a revenue of £2m to £50m also experiencing a cyberattack over the same period. The most common cause of cyberattacks were compromised emails (20%) and data theft (18%), with the average cost of these attacks equating to £2.1m and £2m respectively. But Howden said that despite the growing threat posed by cyberattacks, take-up of even the most basic cybersecurity measures remains low, highlighting a “critical cybersecurity knowledge gap” within UK businesses. The broker found that only 61% of businesses are actively using antivirus software and only 55% are employing network firewalls. Organisations cite a number of obstacles to improving their cybersecurity, including cost (26%), insufficient knowledge (26%) and lack of internal IT resource (22%). Howden estimates that UK businesses could have reduced the costs from cyberattacks between 2019 and 2024 by up to 75% by using basic cybersecurity. It believes that savings would have stood at around £30bn and equate to an average £3.5m per company over the next ten years. The brokers said this would equate to a return on investment of 25%. UK businesses, meanwhile, say that tax relief on cyber investment (33%) would be the most effective way of improving cyber resilience within businesses. Next came free access to cyber expertise and resources (32%), compulsory minimum cyber standards (31%) and compulsory cyber insurance (26%). Howden said the insurance industry must work alongside government to raise awareness of the growing severity and frequency of cyberattacks and the return on investment that can be achieved with the implementation of cybersecurity measures. The insurance industry also has a vital role to play in boosting resilience by advising businesses on security and offering incident response services, it added. Sarah Neild, head of UK cyber retail at Howden, said: “Cybercrime is on the rise, with malicious actors continuing to take advantage of cybersecurity vulnerabilities, particularly as firms become ever more reliant on technology for their operations. UK businesses are currently losing a significant amount of revenue to cyberattacks, and the insurance industry is crucial to strengthening resilience and raising awareness of the security measures needed to help businesses protect their operations.” “Engagement with SMEs will be particularly important. This segment has been historically underserved by the cyber insurance market yet forms an important backbone of economic activity, both in terms of its size but also as an engine of growth. Through increased insurance penetration and education about implementation, we can help businesses improve their cyber resilience and protect against loss of revenue from these attacks,” he added.

UK business suffers £44bn of cyber losses in last five years

Cybersecurity gap a big concern, says Howden

Want to read this article?

Read Next

Asian leaders must focus on supply chain resilience and cyber defences: Jacob

Horra takes charge of Gallagher India

Parent company risk could see captives miss out on proportionality under DORA

Markel appoints casualty claims manager in Australia

Europe plans cyber threat alert for health sector by 2026

Asian leaders must focus on supply chain resilience and cyber defences: Jacob

Horra takes charge of Gallagher India

Parent company risk could see captives miss out on proportionality under DORA

Markel appoints casualty claims manager in Australia

Europe plans cyber threat alert for health sector by 2026

Keep yourself informed

Sign up for Commercial Risk’s newsletters

Want to read this article?

Read Next

Asian leaders must focus on supply chain resilience and cyber defences: Jacob

Horra takes charge of Gallagher India

Parent company risk could see captives miss out on proportionality under DORA

Markel appoints casualty claims manager in Australia

Europe plans cyber threat alert for health sector by 2026

Related Articles

Keep yourself informed

Sign up for Commercial Risk’s newsletters