“Hackers are even more relentless,” said Eric Cernak, cyber practice leader for Munich Re. “Sixty-four percent of risk managers say they have experienced more than six hacking incidents in the last year — up from 32% in 2015. U.S. businesses are under constant assault.”

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Internet of Things a major concern

With the proliferation of electronic devices and connectivity, known as the Internet of Things (IoT), businesses can be vulnerable, especially when employees bring their own devices that they connect to the company’s network or use to access company information.

Only a minority (28%) of the risk managers surveyed said that IoT devices are safe for business use, but a majority (56%) said their organizations already had or were planning to implement the devices.

“As businesses use IoT devices to improve productivity and efficiency, they must think about the security costs,” said Cernak. “Hackers are always looking for ways to access company business systems and connected devices provide additional infiltration points. It’s important to control security features on these devices and monitor employee use.”

In reviewing the possible risks to their organizations from cyber technology, risk managers ranked them as follows:

• Loss of confidential information — 44%.
• Government intrusion — 27%.
• Service/business interruption — 17%.
• Link of devices to WiFi and cloud networks — 10%.
• Lack of service standardization — 2%.

How do the risk managers combat cyber risk?

• Encryption — 44%, up from 25% in 2015.
• Intrusion detection/penetration testing — 28%, down from 32%.
• Employee education programs — 12%, down from 25%.

Given the increased availability and interest in Cyber insurance, you would think that a significant majority of risk managers would have purchased the coverage for their organizations.

However, only half (50%) say their business has either purchased Cyber insurance for the first time or increased its level of coverage in the past year, while 30% of businesses don’t have any level of Cyber insurance coverage.

When asked why they don’t have coverage, risk managers noted Cyber insurance’s perceived complexity (44%), lack of a sufficient threat (34%) and cost (22%) as the primary reasons.

These survey findings may present opportunities for agents and brokers to reach out to their clients and educate them about Cyber insurance.

Related: Cyber insurance's increased profile leads to more offerings and more buyers