Beazley survey shows cyber remains top concern of US, UK business

Cyber remains the top concern in the technology risk category of US and UK business leaders, with 28% of them listing it as their number one risk in 2022, according to a survey by Beazley. 

Technology obsolescence is the number one risk for 27% of UK and US business leaders.

The figure of 28% for cyber represents a decrease from 2021, when 34% of respondents listed it as their top concern. 

Beazley highlighted a “worrying degree of complacency” around active cyber risk management, with over 41% of UK and US business leaders feeling “very prepared” to meet the cyber threat, down from 44% in 2021.

“We are detecting signs that business leaders may have become a little complacent – even over-confident – about the cyber and technology risks faced by their businesses,” said Patricia Kocsondy, head of US cyber and technology at Beazley. 

She added: “Perhaps because of the overwhelming challenge that the current geopolitical environment poses today they may be being blinded to the threat that cyber and technology risk may deliver tomorrow.” 

Some 31% of UK firms and 43% of US firms say they feel “very prepared” to deal with the risks in cyber technology.

Year-on-year, the proportion of business leaders putting intellectual property (IP) risk first has doubled to 22%  in real terms since 2021. 

Meanwhile, the proportion of businesses putting technology obsolescence top of their list has also risen, with concern increasing more in the US than the UK.

“Mid-market clients, in particular, are struggling with what is being asked of them in terms of funding, budgeting for and repairing technology to keep pace with a range of cyber and technology risks,” said Bala Larson, head of cyber client experience at Beazley. “At Beazley, we are placing a lot more emphasis on questions around how to handle end-of-life software and hardware issues, with many industries now in catch-up mode to budget for what their insurers require.”