Cyber underinsurance is a major issue, reveals report from Aon-sponsored research
Businesses across the world are massively under-estimating the importance of having their cyber assets insured, an Aon sponsored report suggests.
The Ponemon Institute report, called The 2017 Cyber Risk Transfer Comparison Global Report, found organizations believe cyber assets are more valuable than plant, property and equipment assets.
However, firms spend four times more budget on insurance protecting plant, property and equipment than cyber.
Ponemon surveyed 2,168 individuals in North America, Europe, the Middle East, Africa, Asia Pacific, Japan and Latin America involved in their company’s cyber risk management and enterprise risk management activities.
Aon’s 2017 Global Risk Management Survey, released at the same time, found cyber was a top concern and businesses in the US and globally were preparing for the risks.
The reports found:
- Organizations valued cyber assets 14 percent more than property, plant and equipment assets
- Quantification of probable maximum loss from cyber assets is 27 percent higher than from property, plant and equipment
- Organizations insure on average 59 percent of plant, property and equipment losses, compared to an average of 15 percent of cyber exposures
To help brokers navigate the complex cyber market in the UK, Insurance Times has released a report comparing insurers different offerings and giving them a rating on coverage. Subscribers can click here to read the report.
To attend the Insurance Times Cyber Insight event 2017, event click here.