Trade – don’t put off your cyber protection!

Do you ever watch an old film, and laugh at its version of “future technology”? Think of Back to the Future, with its flying skateboards and self-tying shoelaces…

It’s easy to look back and find these things funny – perhaps it’s a welcome distraction from the very real threats posed by modern-day tech. As our CEO Kelly Ogley writes in the Insurance Times, we’re in the eye of a cyber storm, thanks to developments in generative artificial intelligence (AI), phishing scams and deepfakes.

As a specialist insurance broker, we’re risk professionals. Cyber is high on our agenda; both protecting our own business and helping others to as well.

“But, the trouble is that many companies are still treating these cyber threats as if they’re science fiction, not science fact,” writes Kelly.

Contents

Is your business at risk of a cyber attack?

Let’s put the danger into some context. Global cyber security firm NCC Group revealed that last year, ransomware attacks increased by 85% on 2022. This year, it’s likely to soar up by another 30%.

There’s nothing a cyber bully loves more than preying on the most vulnerable. So that means that sadly, SMEs are in the firing line. And yet 75% of small firms don’t have cyber cover, according to the World Economic Forum’s Global Cybersecurity Outlook 2024 report, published in January 2024. To make matters worse, 60% of these firms face bankruptcy within six months of a cyber attack.

Kelly continues: “These brilliant companies might be the lifeblood of the British economy, but they’re doing the equivalent of leaving the latch off the hook and the back door open.

“Of course, I get it. Some people simply don’t know about the risk. Some think it’ll never happen to them. And some are struggling to keep their head above water.

“But I suspect the real problem is that many SMEs don’t know where to go to get insurance protection. And, when they do, they’re put off by long, convoluted processes. So, it’s up to us in the insurance industry to sound the alarm.”

And the danger is not just financial. In a world where everything is connected, we’re only as strong as our weakest link. But more than 40% of organisations that experienced a severe cyber impact reported it was due to a third party.

Where can SMEs find cyber support?

At Howden, we’re on the cyber case. In May this year, we launched a new cyber insurance platform for SMEs. There are no lengthy questionnaires, no complex terminology. We offer 24/7 assistance, and the most advanced insights and software analytics.

As Kelly advises: “We’ve got to get our cyber protection in place and be ever more vigilant about how we behave online. That means thinking twice about how we share details. That means knowing exactly who’s accessing our systems. And that means doing our bit as responsible insurers to keep banging the cyber drum.”

Talk to Howden

Your business needs proper protection, whether you’re a sole trader or an SME. For support and advice, our insurance experts are here to help. If you have concerns or would like to talk to us about business insurance, including cyber insurance and whether it’s right for your business, give your local business branch a call.