UK businesses lose £44bn revenue in five years over cyber incidents

Posted by Admin November 25, 2024 Bussiness

Howden suggests that by embracing fundamental cybersecurity practices, UK businesses could slash the costs of cyberattacks by roughly 75%. Credit: T. Schneider/Shutterstock.

New research from Howden reveals UK businesses are being increasingly targeted by cyberattacks, with 52% reporting at least one incident in the past five years.

This has resulted in an estimated loss of approximately £44bn ($45.9bn) in revenue.

Larger businesses with annual revenues exceeding £100m are frequently targeted, with 74% having experienced a cyberattack within the time frame.

Small and medium-sized enterprises (SMEs) are not immune, with 49% of those with revenues between £2m and £50m also reporting attacks.

The most prevalent types of cyber incidents involved compromised emails and data theft, costing businesses an average of £2.1m and £2m, respectively.

Despite the financial impact of cyber threats, UK companies continue to lag behind in adopting basic cybersecurity measures.

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Only 61% use antivirus software and a mere 55% have network firewalls in place.

The main barriers to bolstering cyber defences include cost, a lack of knowledge and insufficient internal IT resources, each cited by 26% of businesses.

Howden suggests that by embracing fundamental cybersecurity practices, UK businesses could slash the costs of cyberattacks by roughly 75%, saving around £30bn from 2019 to 2024.

Over a decade, the average business could save approximately £3.5m, translating to a 25% return on investment.

To improve cyber resilience, businesses are calling for policy changes such as tax relief on cybersecurity investments and free access to expertise and resources.

They also support the introduction of compulsory minimum cyber standards and mandatory cyber insurance.

The findings are based on a survey conducted by YouGov in September 2024, involving 905 senior IT decision-makers from the UK private sector.

Howden UK Cyber Retail Head Sarah Neild said: “UK businesses are currently losing a significant amount of revenue to cyberattacks, and the insurance industry is crucial to strengthening resilience and raising awareness of the security measures needed to help businesses protect their operations.

“Engagement with SMEs will be particularly important. This segment has been historically underserved by the cyber insurance market yet forms an important backbone of economic activity, both in terms of its size but also as an engine of growth. Through increased insurance penetration and education about implementation, we can help businesses improve their cyber resilience and protect against loss of revenue from these attacks.”

Earlier this month, Howden acquired Hong Kong-based Storfield Insurance Consultants.