AIG has urged the re/insurance industry to improve its cyber defence investment following a report that revealed nearly half of UK manufacturers have been the victim of cyber-crime, and that a quarter have suffered related financial loss or business disruption.
The report, which was published by AIG and EEF, the manufacturer’s organisation, found that the manufacturing sector is the third most targeted for cyber-attack, and is one of the least protected sectors against cyber-crime in the UK.
AIG surveyed UK manufacturers, finding that 41% of companies did not believe they had access to enough information to assess their cyber risk, while 45% did not feel they had the right tools for the job.
12% of manufacturers also admitted they have no technical or managerial processes in place for assessing cyber risk.
The threat of cyber-attack is also preventing companies from investing in digital technologies, as over a third of respondents reported they were nervous about digital improvement.
In reality, it is usually outdated or poorly protected office systems which make the manufacturing sector vulnerable to cyber-attack, as production systems are often infiltrated through unprotected software intended for HR or admin use.
Romaney O’Malley, Head of UK Regions & Head of Industrials at AIG Europe, said: “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 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.”
Additionally, Stephen Phipson, Chief Executive Officer (CEO) of EEF, commented: “More and more companies are at risk of attack and manufacturers urgently need to take steps to protect themselves against this burgeoning threat.
“We know businesses cannot afford to ignore this issue any longer and while we welcome government’s progress in improving cyber-security resilience, to date through the work of the NCA and NCSC, there needs to be an increasing focus given to the specific needs of manufacturing, which hitherto has been lacking.
“Failing to get this right could cost the UK economy billions of pounds, put thousands of jobs at risk and delay the supply of essential equipment to key public services and major national infrastructure projects.”
