TORONTO--(BUSINESS WIRE)--Almost 90 percent of Canadian businesses have experienced at least one hacking incident in the last year, according to a study of business risk managers released today by The Boiler Inspection and Insurance Company of Canada (HSB BI&I), part of Munich Re.
More than half (60 percent) believe their companies are dedicating enough money or trained and experienced personnel to combat the evolution of hacking techniques, yet 42 percent do not have cyber insurance coverage.
“With the prevalence of cyber attacks in Canada, there is a clear discrepancy among risk managers’ perceptions and the level of exposure their companies face from hacking activity,” said Derrick Hughes, vice president for HSB BI&I. “Hackers have evolved and so have the risks. Businesses must do more to protect their sensitive information and manage any data breaches.”
Of the risk managers studied, 66 percent represented large enterprises, followed by 28 percent at mid-sized organizations and 6 percent at small-businesses.
The survey revealed a notable uptick in awareness and concern about cyber risk following the recent passage of The Digital Privacy Act (Bill S-4). Nearly 70 percent of risks managers said they would be more inclined to purchase cyber insurance coverage for their company due to the new data breach notification requirements.
Concerns about the type of information being breached ranged from sensitive corporate information (50 percent) to personally identifiable information (42 percent) to financial information (8 percent).
When asked about the type of risk management services they would be most interested in deploying to combat cyber risk, risk managers point to intrusion detection and penetration testing (40 percent), encryption (24 percent) and employee education programs (19 percent).
HSB BI&I’s 2015 Cyber Poll was conducted on-site at the Risk and Insurance Management Society Conference Canada (RIMS Canada) in Quebec City on September 28, 2015. It is intended to represent the sentiments of 102 risk manager attendees who participated through in-person interviews, and represented small (1-99 employees), mid- (100-999 employees) and large-sized (1,000+ employees) businesses in the following industries: Utilities & Energy; Mining; Aerospace, Defense & Security; Manufacturing; Public Sector; Technology; Financial Services; Medical / Healthcare; Retail.
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About The Boiler Inspection and Insurance Company of Canada
The Boiler Inspection and Insurance Company of Canada, a member of the HSB Group and part of Munich Re’s Risk Solutions family, provides the industry-leading range of specialty equipment breakdown insurance coverages for business and home. As Canada’s leading equipment breakdown insurer, the company helps clients reduce risk through a unique combination of specialty coverages, engineering-based risk management strategies, and an in-house team of jurisdictional and loss-prevention inspectors. For more information, visit munichre.com/hsbbii
About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2014, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.2bn on premium income of over €48bn. It operates in all lines of insurance, with over 43,000 employees throughout the world. With premium income of around €27bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the leading insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2014, ERGO posted premium income of €18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €227bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.