Three-quarters of U.S. businesses use the cloud for data storage and almost half have had a service interruption with losses in some cases totaling up to $1 million or more, a survey for The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, has found.
The survey of senior executives conducted by Zogby Analytics for HSB, a leading provider of cyber insurance and services, showed that 41 percent of businesses have, at some point, experienced an interruption of cloud services. Five percent were not sure.
Of those businesses suffering a cloud interruption, 77 percent reported a business disruption with the costs in some cases significant more than $1 million in 34 percent of those cases. Another 30 percent reported $250,000 to $1 million in business losses.
When you consider that most companies use the cloud, they have a serious exposure to business interruption losses, said Timothy Zeilman, vice president for HSB. Technology has rewards but businesses must prepare for the risks.
The survey found 74 percent of the businesses responding used the cloud: 86 percent of those companies said at least 20 percent of their IT services were cloud-based; 44 percent said more than half; and 15 percent said more than 75 percent of services were in the cloud.
The HSB poll on cybersecurity practices and attitudes also found that business continue to struggle with cyber attacks, including ransomware and data breaches.
The most common types of cyber attacks were computer viruses (63 percent), up 12 percent from a similar HSB survey in 2016, and malware (58 percent), up five percent.
Thirty-two percent of businesses surveyed in 2018 had experienced a ransomware or other cyber extortion attack in the past year. Almost one-half (43 percent) paid the ransom with $1,000 to $5,000 being the amount that was most frequently demanded (43 percent of the cases).
Data breaches were reported by 26 percent of the businesses as one-third of those organizations (34 percent) spent $50,000 to $100,000 to respond to each incident and a fifth spent more than $100,000.
Survey Methodology Zogby Analytics was commissioned in 2018 by Hartford Steam Boiler to conduct a survey of 403 senior business executives in the United States including chief executive, financial, information and technology officers. The businesses ranged from companies with revenues of less than $5 million and fewer than 50 employees to $200-$250 million and more than 500 employees. Based on a confidence interval of 95 percent, the margin for error was plus or minus 4.9 percentage points, meaning all other things being equal, the identical survey repeated would have results within the margin of error 95 times out of 100.
Hartford Steam Boiler (HSB), part of Munich Re, is a multi-line specialty insurer and provider of inspection, risk management and IoT technology services. HSB insurance offerings include equipment breakdown, cyber risk, specialty liability and other coverages. HSB blends its engineering expertise, technology and data to craft inventive insurance and service solutions for existing and emerging risks posed by technological change. Throughout its 150 year history HSBs mission has been to help clients prevent loss, advance sustainable use of energy and build deeper relationships that benefit business, public institutions and consumers. HSB holds A.M. Best Companys highest financial rating, A++ (Superior). For more information, visit www.hsb.com and connect on LinkedIn, Twitter and Facebook.
Munich Re is one of the worlds leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the capital investment company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage “ from the 1906 San Francisco earthquake to the 2017 Atlantic hurricane season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the worlds most sought-after risk partners for businesses, institutions, and private individuals.
Zogby Analytics is an international research firm, providing clients with information and knowledge critical for making informed strategic decisions since 1984. The firm conducts multi-phased opinion research with state-of-the-art opinion research capabilities and objective analysis and consultation for banking and financial services institutions, insurance companies, hospitals and medical centers, retailers and developers, religious institutions, cultural organizations, colleges and universities, IT companies and federal agencies.
HSB Media Relations
Dennis Milewski, +1 (860) 722-5567