Two thirds of manufacturers without cover despite serious cyber threat

A new report has shown two-thirds of UK manufacturers do not have any insurance cover against a cyber breach, despite nearly half of those surveyed having been a victim of cyber crime.

The report, Cyber-Security for Manufacturing, showed a quarter of those surveyed had suffered financial loss or disruption as a result of an attack, with firms being urged to reduce their cyber-risk.

Among the findings in the report, published by EEF the manufacturers’ organisation, and AIG and carried out by The Royal United Services Institute (RUSI), while the manufacturing sector was found to be the third most targeted behind government systems and finance, 12% had no process measures in place at all to mitigate against the threat of a cyber breach.

It also revealed 41% of companies do not believe they have access to enough information to even assess their true cyber-risk and 45% do not feel that they do not have access to the right tools for the job. 

While 91% of businesses surveyed say they are investing in digital, 35% consider that cyber-vulnerability is inhibiting them from doing so fully.

Romaney O’Malley, Head of UK Regions & Head of Industrials at AIG Europe added: “For many manufacturers, cyber risk is still not considered a principal risk on the risk register. Nevertheless, the cyber threat landscape has evolved over the last year, with attacks becoming more sophisticated and more broadly disruptive. There is an increasing level of state-sponsored attacks between nation states, where companies infected by malware may just be collateral damage. The potential threat from cyber-crime is widespread.

“There is evidentially significant need for greater awareness and understanding of the importance of cyber risk management, not only to protect existing businesses but to create more secure environments to grow and capitalise on the potential that digital technology advances bring to manufacturers.”