Over 50% of European companies polled in a survey on global network risk have suffered significant financial damage as a result of IT system failure in the last 12 months.
The survey, conducted by the Economist Intelligence Unit and sponsored by Ace Europe, polled senior risk managers and business leaders throughout Europe.
The research also showed that almost 40% of those surveyed had experienced losses as a result of damage or misuse of systems or data by staff or contractors. Nearly 25% had suffered as a result of computer crime, including ‘phishing' – using forged emails or website pages to obtain data – and hacking.
Over 70% of those surveyed said they would continue to invest in greater security and protection such as firewalls and anti-virus software in order to manage IT risks over the next three years.
Ace said it believed European firms should place more emphasis on reducing the impact of technology failure or criminal acts. Shaun Cooper, its senior network risk underwriter, said: "Despite a continual investment in security and protection services, this survey shows businesses are still experiencing significant financial losses.”
“Ace's own experience as underwriters of specialist network risk insurance shows that businesses believe their traditional property and liability programmes will cover losses. But generally they do not cover damage to intangible assets, which leaves companies vulnerable.
"Business must recognise that transferring risks to vehicles such as specialist technology insurance products will reduce their exposure to significant financial losses.”