According to the report, the cyber threat landscape has become more complex, with cyber criminals employing increasingly sophisticated tactics, many aided by AI tools. Beazley surveyed 3,500 global business leaders, revealing a surprising trend: while cyber risks have risen, awareness of these risks has declined. For example, in the US, only 23% of executives ranked cyber risks as their top concern in 2024, compared to 34% in 2021. Additionally, 65% of US respondents believed their current defences were sufficient, raising concerns about potential vulnerabilities.
Preparedness against cyber threats also appears to be waning. In 2024, 73% of US business leaders reported feeling resilient against cyber risks, a significant drop from 86% in 2022. However, 27% of US businesses plan to invest in cyber security, and 23% are exploring insurance options with risk and crisis management services to defend against and recover from cyber incidents.
AI, though seen as a significant opportunity to enhance operational efficiency, has also been flagged as a potential risk. While 26% of US companies are planning to invest in AI technologies to bolster risk resilience, 59% of executives acknowledge that AI will likely replace jobs within their organisations. Furthermore, 27% of US leaders cited technological obsolescence as a major threat, and 26% admitted to being unprepared for this risk.
Paul Bantick, Global Head of Cyber Risks, Beazley said: “As our report shows, with technological innovation set to bring about seismic societal change, the growing regulatory burden for firms, and cyber criminals becoming more and more sophisticated, businesses are facing a wave of new threats. The need for robust risk mitigation strategies has never been greater, and insurance can play an important role. By leveraging the vast amounts of claims, incident, and threat information data we have and translating that into actionable guidance and advising on elevated ‘always on’ resilience for a range of cyber and technology risks, we can help clients to better navigate the risks they face today.”
Francisco Donoso, Chief Technology Officer, Beazley Security said: “The increasing sophistication of threat actors has blurred the line between nation-state and criminal cyber activities. This convergence has brought about a new era of unprecedented risks that leave global business leaders feeling unprepared. While investments in protection and defense are essential, security professionals must recognize that security edge devices are increasingly targeted as an entry point in an attack. They should enhance detection capabilities while also focusing on building cyber resilience to ensure readiness to respond to threats as they emerge.”
