The Hanover's 2023 Report Finds Businesses Lack Protection and Recovery Plans Against Cyber Attacks

Rhea-AI Summary

The Hanover Insurance Group released its 2023 Cyber Resiliency Report, revealing a lack of preparedness by small and mid-sized businesses for cyberattacks.

Positive

• 74% of small and mid-sized business decision-makers are confident in their ability to prevent cyberattacks effectively.
• The Hanover's CyberSecure Program™ offers policyholders access to a curated set of solutions to address cybersecurity gaps and help prevent cyber losses.

Negative

• Most businesses do not have basic cybersecurity prevention measures in place.
• The majority of small and mid-sized businesses are not prepared to respond to a cyber breach.

Only 7% of small to mid-sized businesses think it's very likely that they will experience a cyber incident in the next 12 months

WORCESTER, Mass., Oct. 23, 2023 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of insurance for individuals, families and businesses, today released its 2023 Cyber Resiliency Report which highlights a lack of preparedness by businesses for cyber-related attacks.

The Hanover commissioned The Harris Poll to conduct the research, which found that 74% of small and mid-sized business decision-makers (defined as C-level executives at businesses with 3-249 employees) are confident in their ability to prevent cyberattacks effectively. Alarmingly, most businesses do not have basic cybersecurity prevention measures in place. The research affirmed the important role independent insurance agents play as experienced advisers, offering risk management tips and access to services to help business owners and operators protect their operations and maximize the benefits of their cyber insurance programs.

Key findings uncovered in the research include: 

• Most small and mid-sized businesses have a level of cyber risk in their everyday operations
  • 67% of businesses store business documents in a public cloud
  • Nearly half (49%) of businesses have not conducted a business-wide cyber risk assessment within the past 12 months
• Most small and mid-sized businesses do not have fundamental cybersecurity prevention measures in place
  • 62% of businesses do not offer cybersecurity training for all employees
  • 50% of businesses do not use multi-factor authentication
  • 62% of businesses do not use endpoint protection for devices
• If a cyber breach occurs, the majority of small and mid-sized businesses are not prepared to respond
  • 61% of businesses do not have an incident response plan
  • 81% of businesses do not have a post-breach response team

"Amidst the digital landscape's growing complexities, this new data unveils a stark truth: businesses are at a crossroads between acknowledging the looming cyber threat and taking meaningful actions. With a small percentage of business decision-makers thinking a cyber incident is 'very likely,' the difference between perception and reality is glaring," said Eric Cernak, president of cyber at The Hanover. "This creates an opportunity for independent agents to talk with their customers about the importance of proactively managing cyber risk and leveraging cybersecurity services, like those offered through The Hanover's CyberSecure Program™, to help prevent losses." 

The research also affirmed the important role independent insurance agents can play as experienced advisers, offering risk management tips and services to help business leaders protect their operations and maximize the benefits of their cyber insurance programs. With thousands of cyber risk management service providers in the marketplace, it can be challenging for businesses to know where to turn. The Hanover's CyberSecure Program™ offers policyholders access to a curated set of solutions, making it easy for policyholders to leverage these services to address cybersecurity gaps and help prevent cyber losses. Offered through vetted industry partners, the services are offered at no charge or at a discount.

To read the full results from the 2023 Cyber Resiliency Report while exploring business risk mitigation considerations please click here. 

About The Hanover 
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com. 

Survey Method
The research was conducted online in the United States by The Harris Poll on behalf of Hanover among 300 small business owners and executives defined as U.S. adults ages 21+ who are employed full-time or part-time, have a title of owner/president/partner/C-suite executive at their company, and the company employs 3-249 employees. The survey was conducted August 17-24, 2023. Data were sampled to be representative by employee size to ensure they were in line with their actual proportions in the population.

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 5.63 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.

For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kyle Tildsley at ktildsley@hanover.com. 

CONTACTS:
Emily P. Trevallion	Kyle Tildsley
etrevallion@hanover.com	ktildsley@hanover.com
508-855-3263	508-855-3287

 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates ("The Hanover"). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. For more information about The Hanover visit our website at www.hanover.com.

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SOURCE The Hanover Insurance Group, Inc.

FAQ

What is the Hanover Insurance Group's 2023 Cyber Resiliency Report?

The Hanover Insurance Group released its 2023 Cyber Resiliency Report, which highlights a lack of preparedness by businesses for cyber-related attacks.

What percentage of small and mid-sized business decision-makers are confident in their ability to prevent cyberattacks?

74% of small and mid-sized business decision-makers are confident in their ability to prevent cyberattacks effectively.

What is the Hanover's CyberSecure Program™?

The Hanover's CyberSecure Program™ offers policyholders access to a curated set of solutions to address cybersecurity gaps and help prevent cyber losses.

Do most businesses have basic cybersecurity prevention measures in place?

No, most businesses do not have basic cybersecurity prevention measures in place.

Are small and mid-sized businesses prepared to respond to a cyber breach?

No, the majority of small and mid-sized businesses are not prepared to respond to a cyber breach.