Executives Shift Focus to Technology Obsolescence as Cyber Risk Concerns Drop

A recent survey by Beazley PLC reveals that global executives are shifting their focus from cyber threats to the risk of technology obsolescence. Over a quarter of business leaders (27%) are concerned about the rapid pace of innovations, such as AI, and expect this number to rise by 2025. Many see AI as both a critical opportunity and a threat, with 68% fearing job losses due to its adoption.

Despite cyber threats growing in sophistication, concern around cyber risks has decreased, with only 26% of executives identifying it as their top risk, down from 34% in 2021. Additionally, 75% of executives feel prepared to manage cyber risks, a decline from previous years, highlighting a gap between perceived and actual resilience. Healthcare and supply chains are particularly vulnerable to cyberattacks, as these sectors hold sensitive data that attracts cybercriminals.

Amid the evolving risk landscape, businesses are increasingly relying on insurance as a safety net, with nearly a quarter exploring options that include crisis management services. This suggests that, while cyber risks may be perceived as less urgent, the importance of comprehensive risk management, including insurance, continues to grow.