Insurers and asset managers worldwide continue to focus on cybersecurity amid growing risks, according to findings from a Moody’s Ratings survey that polled 110 companies operating across both sectors.
Respondents’ total investment in cybersecurity rose by 53% between 2019 and 2023, and the share of total IT budgets devoted to cyber risk rose to 8% in 2023 from 5% in 2019. Meanwhile, the number of cybersecurity employees rose by about 23%, according to survey results.
“Most insurers and asset managers are engaged in longer term cybersecurity planning and have put in place advanced cybersecurity protection,” a press release said. “Third-party risk management is also a key focus for both industries. These efforts reflect the growing frequency and sophistication of cyberattacks, as well as increased regulatory expectations regarding cyber resilience.”
Moody’s found that companies in the Americas — which account for a large majority of cyberattacks — reported a 65% increase in cybersecurity spending. In its latest Global Financial Stability Report, the International Monetary Fund reported that nearly one in five of all cyber incidents affect financial institutions.
A total of 96% of insurers and asset manager respondents reported they had dedicated cybersecurity staff, and respondents experienced a 23% average increase in the number of full-time cybersecurity employees between 2019 and 2022, compared with 13% in 2017-2019.
When it comes to long-term planning, approximately 98% of respondents said they had a multiyear strategy for managing cyber risk, such as comprehensive risk assessments, advanced technology and skilled personnel investments or proactive incident response procedures. All respondents also reported providing employee training in cyber risk management at least once a year. About half reported doing so monthly.
“Cyber insurance premiums rose steeply between 2020 and 2022, with insurers, brokers and asset manager respondents reporting double-digit increases or higher, particularly for accounts reporting losses,” the report said. “Despite higher premiums, almost 85% of organizations said they planned to keep their insurance coverage unchanged in the next twelve months, while 13% said they aimed to increase it.”
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