HARTFORD, Conn.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV) today released the results of its 2024 Travelers Risk Index, which highlighted cyber threats as the top concern among business leaders. The annual survey began in 2014 and asks business insurance decision-makers from U.S. companies of various sizes and industries about the issues that worry them most.
This was the fourth time in six years that cyber threats ranked as the top concern, with a record number (62%) of participants saying they worry some or a great deal about cyber risks. Cyber concerns were followed by medical cost inflation (59%), which held the top spot in 2023; increasing employee benefits costs (59%); broad economic uncertainty (59%); and the ability to attract and retain talent (54%).
“The findings speak to the business community’s greater awareness of cyber threats and the catastrophic damage, both operational and financial, a cyberattack can have on a company,” said Tim Francis, Enterprise Cyber Lead at Travelers. “What’s troubling is that while more businesses are securing cyber insurance as a tool to mitigate vulnerabilities, many still elect not to – despite knowing the risks.”
Increasing Cyber Coverage
Nearly 30% of the more than 1,200 respondents said their company did not have a cyber insurance policy. Notably, the percentage who said their business did have a policy (65%) is up from last year (60%) and is considerably higher than in 2018, when only 39% said they had a cyber insurance policy. The year-over-year increase was seen across businesses of all sizes: small businesses jumped to 41% from 34%; mid-sized companies increased to 77% from 74%; and large businesses rose to 78% from 72%.
Rising Cyber Incidents
The increase in cyber insurance policies coincided with a slightly higher percentage (24% compared to 23% in 2023) of survey participants reporting that their company had experienced a cyber incident, with more than half of those incidents having occurred within the past year. This is the eighth time in nine years that the percentage of respondents who said their company has suffered a data breach or cyber event increased from the previous year.
Top Cyber Concerns
Tied for first, with 57% of respondents listing them as a top cyber-related concern, were a security breach and someone gaining unauthorized access to financial accounts or control systems. Rounding out the top five cyber concerns were:
- Ransomware (54%, which saw the largest jump, up from the ninth cyber-related concern in 2023).
- Employees putting information or systems at risk through unauthorized or unsafe computing practices (53%).
- System glitch (53%).
A microsite developed by Travelers provides key Risk Index survey results and highlights.
Travelers Institute Cyber Awareness Events
The Travelers Institute, the public policy division of Travelers, will host three in-person educational programs in October – Cybersecurity Awareness Month – aimed at helping business leaders prepare for and respond to cyber incidents. The Travelers Institute’s Cyber: Prepare, Prevent, Mitigate, Restore symposium series will make stops in Irvine, California, on Oct. 10, and in Philadelphia on Oct. 30. A webinar on Oct. 2 will offer tips related to cyber readiness. All events are free and open to the public. For more information and to register, visit the Travelers Institute Events & Webinars page.
About the Survey
Hart Research conducted a national online survey of 1,202 U.S. business insurance decision-makers June 20-30, 2024, regarding their top challenges. Launched in November 2014, the Travelers Risk Index survey was commissioned by Travelers.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $41 billion in 2023. For more information, visit Travelers.com.
