Corporate executives are more are concerned about cyber threats than other major business risks, according to a survey by American International Group (AIG) Inc.
In response, AIG developed CyberEdge, a free iPad app featuring the latest cyber news, real-time information on country-wide data breaches, a breach cost calculator, an events calendar and a glossary of common cyber terms. More than 20 claims narratives also are included in the App for better understanding how to handle breaches.
More than 85 percent of the 258 decision makers surveyed said they were very or somewhat concerned about cyber risks to their organizations, compared with the group’s response to six other areas of risk, including income loss (82 percent of executives were very or somewhat concerned), property damage (80 percent), and securities and investment risk (76 percent).
Additional survey results, which include input from insurance brokers, found high demand among executives and brokers for information about cyber threats, with 80 percent indicating that they find it difficult to keep pace with rapidly evolving cyber threats.
Other findings of note provide further insight into the pervasiveness of cyber risk concern among executives and brokers:
- More than two-thirds (69 percent) of executives and brokers said the reputational risk from a cyber attack is far greater to a company than the financial risk.
- More than seven-in-ten (75 percent) executives and brokers say legal compliance issues are making companies think more about cyber risks.
- The vast majority of brokers and executives (82 percent) believe hackers are the primary source of cyber threats, though a significant portion of those surveyed (71 percent) also perceive human error as a significant component of cyber risk.
“These new survey findings confirm that business leaders view cyber risk as a top business concern, with great potential for reputational and financial loss,” said John Gambale, Head of Professional Liability and Lexington Financial Lines Executive, U.S./Canada Financial Lines, AIG. “At AIG, the first company to introduce cyber insurance in 1999, we are working to address these concerns and provide a valuable additional layer of support through our comprehensive risk management solution for cyber insurance.”
In addition to the app’s functions listed above, CyberEdge policyholders also can qualify for AutoShun, a third-party hardware device that sits between a customer’s firewall and the external Internet, and RiskTool, a web portal enabling qualified policyholders to proactively manage risk management policies, training and compliance to mitigate cyber exposure.
