FICO Survey: More Than One-Third of Canadian Firms Do Not Have Cybersecurity Insurance

While ahead of global averages, Canadian businesses still have a long way to go to fully protect themselves in the event of a data-breach

TORONTO, May 31, 2017 /CNW/ --

Highlights:

  • 36 percent of Canadian security executives surveyed say their firm has no cyber security insurance, compared to 50 percent in the U.S. and 40 percent globally
  • 80 percent of respondents say insurers should do more to explain how they price risk coverage
  • Ovum conducted telephone surveys for FICO of security executives at 350 companies in Canada and other countries

Canadian firms are ahead of the curve when it comes to cybersecurity risk insurance, but over one-third (36 percent) have not taken out cybersecurity insurance at all. Those are key findings in a new survey conducted by research and consultancy firm Ovum for Silicon Valley analytics firm FICO, which reveals that even among those that have insurance, only 18 percent say they have cybersecurity insurance that covers all likely risks.

FICO will host a Tweet Chat on the cybersecurity survey with Ovum tomorrow at 11:00 am EDT. Individuals are encouraged to participate using #cybertrends.

Although the survey showed the efforts Canadian organizations still have to take to ensure they are fully protected in the event of a cyber-attack, it also shows that these organizations are significantly more responsible than many of their global counterparts when it comes to insurance — especially when compared to the U.S. While only 16 percent of Canadian organizations say they have no intention of taking out cyber-risk insurance, more than a quarter (27 percent) of surveyed U.S. executives responded the same way.

"Without cyber-risk insurance, organizations are leaving themselves in a very vulnerable position," said Kevin Deveau, vice president and managing director of FICO Canada. "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."

There is still confusion in Canada and other countries about how cybersecurity insurance premiums are set. 80 percent of Canadian firms feel that more could be done to help organizational decision makers understand how risk price structure is calculated. More than a quarter of respondents (26 percent) feel that the introduction of an established industry standard to benchmark cybersecurity risk would be beneficial. Currently, 20 percent feel that the premiums calculated based on their business do not accurately reflect their risk profile.

Ovum conducted the survey for FICO through telephone CXOs and senior security officers in 350 companies based in Canada, the US, the UK, and the Nordics in March and April 2017. The respondents represented firms in financial services, telecommunications, healthcare, retail, ecommerce and internet service providers.

For more information, read our white paper: http://www.fico.com/en/latest-thinking/white-paper/what-the-c-suite-needs-to-know-about-cyber-readiness

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 170 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

Learn more at http://www.fico.com

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

About Ovum

Ovum is a market-leading research and consulting firm focused on helping digital service providers and their vendor partners thrive in the connected digital economy. Through its 150 analysts worldwide, it offers expert analysis and strategic insight across the IT, telecoms, and media industries. Founded in 1985, Ovum has one of the most experienced analyst teams in the industry and is a respected source of guidance for technology business leaders, CIOs, vendors, service providers, and regulators looking for comprehensive, accurate, and insightful market data, research, and consulting. With 23 offices across six continents, Ovum offers a truly global perspective on technology and media markets and provides thousands of clients with insight including workflow tools, forecasts, surveys, market assessments, technology audits, and opinion.

Ovum is part of the Business Intelligence Division of Informa plc, a leading business intelligence, academic publishing, knowledge and events group listed on the London Stock Exchange. https://ovum.informa.com/

 

SOURCE FICO

For further information: Media: Erin Griffin, Kaiser Lachance Communications, 647-641-3020 ex.221, erin.griffin@kaiserlachance.com, http://www.fico.com


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