Business leaders identify cybersecurity and tech disruptions as primary threats to company growth, with approximately 89% of executives intending to broaden their cyber insurance policies to combat rising technology-related vulnerabilities, reveals a Chubb study.
The insights emerge from a Chubb-commissioned Harris Poll study, which surveyed 500 business decision-makers involved in risk management.
Among large company executives, 74% identify cybersecurity as their main growth concern, while 40% indicate cyber attacks and information breaches as the most disruptive and costly human-caused threats. These worries significantly exceed other risks including accidents, regulatory changes, civil unrest, and hazardous material exposure, with all other risk factors falling below 25%.
In terms of geopolitical challenges, cybersecurity leads at 60%, while resource limitations, environmental changes, political uncertainty, and other threats register below 40%.
Cyber threat surveillance emerges as the primary risk management strategy, with 84% of executives reporting it as either completely integrated (41%) or commonly utilized (43%) within their companies. An additional 14% employ it occasionally.
The research indicates 79% of organizations are incorporating AI into their risk management strategies, though many leaders express worry about AI-related threats, particularly deep fakes, with over 50% reporting organizational impact.
For technology-focused executives, data reliability (56%) and digital transformation hurdles (53%) represent key worries, especially among mid-sized enterprises (60%).
Juan Luis Ortega, North America Insurance President at Chubb, stated, “Chubb’s ‘Risk Decisions 360°’ study delivers vital understanding of the changing risk environment, enabling businesses across sizes to make strategic choices for sustainable development.”
The study further shows 86% of companies currently have or intend to secure business interruption protection against events like cyber attacks, natural calamities, or supply chain issues, with 53% already covered and another third planning coverage within 12 months.
Nevertheless, over one-third of executives feel their organizations aren’t highly effective at handling various emerging and evolving risks.
These results highlight insurance’s growing significance in addressing current business risks, with 89% of executives planning to increase their cyber insurance coverage to tackle expanding technological vulnerabilities.
