Research from business insurer Hiscox shows that the cost of dealing with cyber events for businesses has more than tripled since 2018. The study, which collated data from the organisation’s previous five annual Cyber Readiness reports, has revealed that:
- Since 2018 the median IT budgets for cyber security more than tripled
- Between 2020 and 2022 cyber-attacks increased by over a quarter
- Businesses are increasing their cyber security budgets year-on-year
In the Hiscox 2022 Cyber Readiness report, the financial toll of cyber incidents, including data breaches, was estimated to be $16,950 (£15,265) on average. As the cost of cybercrime grew, so did organisation’s cybersecurity budgets – average spending on cybersecurity tripled from 2018 to 2022, rocketing from $1,470,196.05 (£1,323,973.13) to $5,235,162.16 (£4,714,482.83).
Hiscox has also revealed that half of all companies surveyed suffered at least one cyber attack in 2022, up 11% from 2020. Financial Services, as well as Technology, Media and Telecom (TMT) sectors even reported a minimum of one attack for three consecutive years. Financial Services firms, however, seemed to be hit the hardest, with 66% reporting being impacted by cyber attacks in 2021-2022.
Alana Muir, Head of Cyber at Hiscox, commented on the findings, saying: “Cyber risk has risen to the same strategic level as traditional financial and operational risks, thanks to a growing realisation by businesses that the impact can be just as severe. While there has been some fluctuation over the years, cyber attacks are on the rise, so the increased focus and investment from businesses to minimise damage to their brand, operations and customers is positive.
“A proactive approach to cyber security is the best way to reduce the likelihood of a cyber event and limit the impact. Businesses should regularly evaluate their processes, people management and knowledge of the subject, and aim to create a culture of cyber security where everyone is well-equipped to respond, should the worst happen.”
