Cyber threats as the top concern for businesses. This marks the fourth time in six years that cyber risks have taken the lead. according to 2024 Travelers Risk Index, released by The Travelers Companies.
The annual survey, launched in 2014, gathers insights from business insurance decision-makers in US-based companies across various industries.
Top cyber concerns
- Security breaches and unauthorized access (57%)
- Ransomware, which jumped to 54%, up from ninth place in 2023
- Unsafe employee computing practices (53%)
- System glitches (53%)
A record 62% of respondents identified cyber risks as their main concern. Medical cost inflation followed at 59%, having held the top spot in 2023.
Other significant concerns include rising employee benefits costs (59%), economic uncertainty (59%), and talent attraction and retention (54%).
- Increasing employee benefits costs, economic uncertainty, and talent attraction and retention were also major concerns, each cited by 59%, 59%, and 54% of businesses respectively.
- Cyber insurance adoption increased, with 65% of businesses now having coverage, up from 60% last year and 39% in 2018.
- Cyber insurance uptake across business sizes: Small businesses: 41% (up from 34%), Mid-sized businesses: 77% (up from 74%), Large businesses: 78% (up from 72%)
- Cyber incidents reported by businesses rose to 24% in 2024, up from 23% in 2023, continuing an eight-year trend of annual increases.
One significant solution to mitigate cyber threats, according to Travelers, is expanding cyber insurance coverage. Despite the risks, nearly 30% of the more than 1,200 respondents stated their companies did not have a cyber insurance policy. However, the percentage of businesses with cyber coverage rose to 65%, up from 60% last year and significantly higher than 39% in 2018.
Growth in cyber insurance was seen across businesses of all sizes. Small businesses increased their coverage to 41%, up from 34%. Mid-sized companies grew to 77% from 74%, and large businesses saw an increase to 78%, compared to 72% in 2023.
This increase comes as cyber incidents continue to rise, with 24% of companies reporting a breach or cyber event in 2024, up from 23% the previous year. For eight out of the past nine years, the number of businesses reporting cyber incidents has grown annually.
The top cyber concerns for businesses include security breaches and unauthorized access to financial accounts or control systems, with 57% of respondents highlighting these risks.
Ransomware followed at 54%, a notable jump from ninth place in 2023. Other concerns include employees putting systems at risk through unsafe computing practices (53%) and system glitches (53%).
Tim Francis, Enterprise Cyber Lead at Travelers, noted the growing awareness of cyber threats among businesses and the severe financial and operational damage cyberattacks can cause.
Despite the rise in cyber insurance adoption, he expressed concern that many businesses still choose not to secure coverage, even with full awareness of the risks.