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Survey Highlights the Growing Necessity for Investment in Cyber Resilience

Introduction

TORONTO – In today’s digital landscape, both businesses and cyber criminals are leveraging the advancements of artificial intelligence (AI) to achieve their respective goals. While businesses utilize AI for efficiency, neo-cyber attackers exploit the same technology to launch increasingly sophisticated cyber attacks. This troubling trend is alarming and has caught the attention of small business owners across Canada. According to a comprehensive survey by the Insurance Bureau of Canada (IBC), a significant 65% of small and medium-sized business owners and decision-makers express concern that emerging AI technologies will complicate their efforts to combat cyber risks.

The Growing Threat from Cyber Criminals

Mahan Azimi, the Manager of Catastrophic Risk Policy at IBC, noted, "AI has transformed cyber attacks into automated processes that are easier to initiate yet also harder to detect. This poses a genuine risk to the integrity and security of any organization." The increasing prevalence of AI applications means that cyber criminals are adopting new tactics that outpace traditional preventive measures. For instance, advanced AI tools like ChatGPT can create deceptively convincing social engineering emails, while other technologies are now capable of adapting to security defenses in real-time, thus enhancing the efficacy of cyber operations.

Declining Preparedness Among Business Owners

Despite the rise in emerging cyber threats, the survey findings paint a concerning picture regarding the preparation and proactive investments by business owners in cyber resilience. The data reveals a notable decline: in 2023, 69% of small to medium-sized business owners indicated they were actively working to minimize exposure to cyber risks. However, this figure has decreased to only 61% in 2024. This downturn illustrates a worrisome trend where business leaders may be underestimating the urgent need for robust cyber defense strategies.

Key Survey Insights:

• Perceived Vulnerability: Almost half (45%) of respondents believe their businesses might currently be at risk for a cyber attack or data breach, yet a staggering 62% do not prioritize cybersecurity as a financial concern.
• Implementation of Defenses: A mere 45% have instituted protective measures against cyber threats, with only 31% reporting an increase in their cybersecurity protocols over the past year.
• Insurance Coverage: Alarmingly, only 18% of those surveyed claim to have cyber attack insurance, indicating a significant gap in financial preparedness for a potential breach.

The Urgent Need for Proactive Cyber Strategies

Azimi emphasizes the urgency for business owners: "As cyber criminals adeptly harness AI and other innovative technologies, it’s essential for business leaders to stay ahead of their game in safeguarding their organizations, employees, and customers." Fortunately, protecting your business does not have to be cost-prohibitive or overly burdensome. IBC offers numerous free resources aimed at helping business owners understand the nuances of cyber risks and the concrete steps they can take to bolster their resilience. A critical aspect of managing these risks involves becoming well-versed in the advantages of cyber insurance.

Resources for Enhancing Cyber Resilience

To further support the initiative, IBC has been committed to enhancing awareness about cyber resilience through its annual Cyber Savvy public education campaign. This effort seeks to equip businesses with vital tools and information.

AI legalese decoder: A Valuable Resource

In this technological age, the complexity of legal documents can also deter business owners from pursuing necessary protections like cyber insurance. This is where the AI legalese decoder comes into play. This AI-driven tool simplifies legal jargon found in cyber insurance policies, empowering business owners to better understand the coverage options available, thus encouraging informed decision-making. Ensuring you comprehend the terms and conditions is crucial, especially when safeguarding your business against potential cyber threats.

Self-Assessment Tool

Moreover, IBC has launched a self-assessment tool designed specifically for small and medium-sized enterprise (SME) owners contemplating a cyber insurance policy. This easy-to-use 10-question assessment helps business leaders gain insight into the cybersecurity measures and best practices most insurers expect while evaluating risk. It effectively mirrors pertinent questions cyber insurers are likely to pose during the application process, enabling SMEs to prepare better.

The self-assessment tool and other invaluable resources for SME owners can be accessed at CyberSavvyCanada.ca.

About the Survey

The insights shared in this report are derived from a survey conducted by the Insurance Bureau of Canada from August 2 to 9, 2024, targeting an online sample of 317 business owners or decision-makers who are part of the Angus Reid Forum. Survey participants represented companies with fewer than 500 employees. Conducted in both English and French, the survey’s sample size carries a margin of error of ± 5.4%, 19 times out of 20, which supports the reliability of these findings.

About Insurance Bureau of Canada

Founded in 1964, the Insurance Bureau of Canada (IBC) serves as the national industry association representing Canada’s private home, auto, and business insurers. The member companies of IBC constitute a significant portion of the competitive landscape within Canada’s private property and casualty (P&C) insurance market.

As a leading advocate for private P&C insurers in Canada, IBC collaborates with governments, regulatory bodies, and stakeholders to ensure a vibrant environment for the P&C insurance industry, thereby fortifying protections for Canadians against the risks inherent in modern life.

IBC firmly believes that Canadians value and deserve access to a resilient and responsive private P&C insurance sector that effectively meets the insurance needs of both individuals and businesses.

For further updates, media releases, informative articles, or to schedule interviews with IBC representatives, visit ibc.ca. Also, follow us on LinkedIn, Twitter, Instagram, and Facebook. If you have inquiries related to home, auto, or business insurance, reach out to IBC’s Consumer Information Centre at 1-844-2ask-IBC. We are here to assist you.

Media Contact

Brett Weltman
Manager, Media Relations, IBC
[Email: [email protected]]

Conclusion

As cyber threats become increasingly prevalent and sophisticated, the adoption of artificial intelligence by bad actors necessitates a proactive and informed response from business owners. With the right tools, knowledge, and resources—such as those provided by the IBC and the AI legalese decoder—businesses can bolster their defenses and navigate the complex landscape of cyber resilience effectively.

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