Significant cyber incidents have tripled in two years in Canada, driven by technological, socioeconomic and geopolitical factors such as the war in Ukraine, according to research from commercial insurer QBE.
Disruptive, globally significant and successful cyberattacks have increased from 10 in 2023 to 18 in 2024 and are expected to reach 32 by the end of the year, according to QBE’s latest Control Risks Report.
Businesses are acutely aware of this: four in five businesses (80%) feel cyber threats have increased in Canada over the past year, according to another piece of research conducted by Opinium for QBE. (See below for research methodology).
Cyber Experience
The research highlights more than half of Canadian businesses (53%) have experienced a cyber event in the past 12 months. And nearly one in five (18%) of businesses experienced a cyber event which resulted in an interruption of one working day or more – 35% of businesses experienced a cyber event and the disruption lasted less than a working day.
Half of cyberattacks (51%) in Canada resulted in a loss of revenue. And 58% of businesses that experienced cyberattacks said that some, most, or all of them were related to a supplier.
“Businesses are increasingly connected to one another. Strengthening their internal digital security is still very important. However, if they forget to look at their suppliers’ vulnerabilities, they will remain exposed. Risk management will need to look at their entire IT supply chain, with focus on their critical suppliers,” commented Kyle Gray, technical underwriter team lead, Cyber.
Therefore, QBE said, it’s logical that 78% of businesses are concerned about the cyber threats they may face in the coming year (53% somewhat concerned and 25% very concerned). In that context, 28% of businesses anticipate their cyber security budget to increase beyond inflation (and 41% in line with inflation) over the next 12 months.
However, 25% of those surveyed do not have cyber insurance and 15% do not have an incident response plan to address a cyber event, QBE said.
