Canadian companies ahead of curve in cyber insurance

Published: June 3, 2017

Updated: July 24, 2018

Author: Luke Jones

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Many Canadian companies are ignoring the potential dangers of cyberattacks and are not protecting their organization again threats. A survey finds over a third (36%) of respondents have not taken out cybersecurity risk insurance, despite a majority of Canadian companies being “ahead of the curve”.

Research and consultancy firm Ovum carried out the survey on behalf of analytics company FICO. The results show that many companies have so far ignored cybersecurity insurance, but this figure is an improvement on companies south of the border. In the US, 50% of companies have not taken out protection against cyberattacks.

Without cyber-risk insurance, organizations are leaving themselves in a very vulnerable position,” FICO Canada vice-president and managing director Kevin Deveau commented on the data.

The global average shows that 40% of companies are lacking cybersecurity insurance. So, the assessment that Canadian companies are ahead of the curve is accurate, even if there is undoubtedly room for improvement.

Over 60% of Canadian companies say they have taken cyber protection insurance. However, only 18% say their existing policy covers all potential risks.

“It’s important for businesses to assess the strength of their cybersecurity defences and to make sure they are covered if they are faced with a data breach. The ripple effect of a breach can be felt throughout the organization for a very long time, especially now that Canada’s Digital Privacy Act will require organizations to report any breaches to regulators and customers.”

Organizations remain largely confused by the cybersecurity insurance market. Eight percent (80%) of respondents think insurance companies can communicate better how price structures and protections works.

26% says that there should be industry standards in place to deliver a benchmark for customers to understand.