U.S.-based executives feel more prepared to counter cyber threats, potentially indicating a false sense of security because many companies lack the ability to be adequately preparedness, according to a new report from specialist insurer Beazley.
According to the report, Spotlight on Tech Transformation & Cyber Risk 2025, the perception of cyber resilience rose to 81% from 73% a year ago.
More executives may feel prepared, however concern over cyber risk has also risen, with 31% of executives citing the risk as their greatest threat, up from 22% in 2024, the report shows.
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“This contradiction underestimates today’s cyber and tech threat landscape, which is increasingly dynamic and unpredictable – as the recent high profile ransomware attacks on major retailers have made alarmingly clear,” the report states. “Failure to recognise this reality leaves businesses exposed, unprepared and increasingly vulnerable to today’s fast-evolving digital threats.”
Business executives are focused on the transformative potential of AI, with 79% of the surveyed agreeing that AI will have a positive impact on their business’ economic prospects this year, and 71% believing AI will replace jobs in their company over the next 18 months.
The survey was undertaken with 3,500 respondents based in the U.K., U.S., Canada, Singapore, France, Germany and Spain.
Survey participants were asked about their views on insurers and insurance, as well as on four categories of risk:
- Cyber and technology (including the threat of disruption, failure to keep pace with changing technology, cyber risk)
- Geopolitical risk (including strikes and civil disruption, changes in legislation and regulation, economic uncertainty, inflation and war & terror.)
- Business risk (including supply chain instability, business interruption, boardroom risk, crime)
- Environmental (including climate change and associated catastrophic risks, environmental damage, greenhouse gas emission, pandemic)
Despite more executives feeling prepared, 79% of those surveyed say they are planning to improve their cyber security with third-party suppliers following high-profile systemic cyber incidents, and 37% plan to invest in improved cyber security this year (up from 24% in 2024).
Cyber risk is now perceived to be the greatest threat facing global executives this year, across all four risk areas surveyed: cyber risk, disruption risk, IP risk and technology obsolescence.
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Executives in seven countries and nine industries gave views on key technology and cyber risks. The industry most worried about cyber risk was the technology, media and telecom sector (33%), followed by the manufacturing, retail, wholesale, food and beverage sector (31%) and the financial institutions and professional services sector (31%).
The industry that expressed the most confidence in being prepared for cyber risk was the energy and utilities, marine and warehousing sector (86%).
