Cyber risk ranked among the top three concerns for U.S. businesses, but still came in second to medical cost inflation, according to the second annual Travelers Business Risk Index.
Travelers asked over 1,200 “decision makers” at businesses of all sizes to cite their main concerns when looking at the future health of their firms.
“The top three concerns are indicative of the ever-evolving risks that pose threats to American businesses,” said Michael Klein, executive vice president and co-president of business insurance at Travelers. “Yet, when it comes to managing risk, businesses are often least prepared for their most worrisome concerns. Fortunately, many of these risks can be mitigated and resources are available to help businesses of any size stay protected.”
The survey revealed more optimism than the previous year, when the economy weighed heavy on the minds of business leaders. Fewer respondents said they believe the world is actively becoming riskier – though it may already be at full capacity for risk in terms of medical inflation, cyber risk, and legal liability.
Travelers found medical inflation to be the top risk for 60 percent of all businesses responding to the survey, but the risk lessened in importance since the previous year, when 67 percent cited it as their top risk. However, 33 percent stated that they feel least equipped to manage the risk of medical cost inflation.
Cyber risk represented one of the more complex concerns for businesses, with 55 percent of respondents most concerned about malicious and criminal cyber attacks; 24 percent citing human error; and 21 percent worried about system malfunction.
Malicious attacks further broke down into 57 percent of respondents concerned by viruses affecting their computer or data systems; 51 percent worried about wrongdoers accessing bank accounts or financial control systems; and 50 percent naming a security breach or someone hacking into their computer systems as a primary concern.
Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
