By Mia MacGregor

June 9 - (The Insurer) - Significant cyber incidents have tripled in Canada over the past two years, driven by technological, socioeconomic and geopolitical factors, including the conflict in Ukraine, according to research by commercial insurer QBE.

Globally disruptive and successful cyberattacks increased from 10 in 2023 to 18 in 2024, with expectations to reach 32 by the end of the year, as detailed in QBE’s latest Control Risks report.

The report also highlighted that over half of Canadian businesses (53%) have encountered a cyber event in the past year.

Nearly one in five businesses (18%) experienced a cyber incident that resulted in a disruption lasting one working day or more, while 35% faced disruptions lasting less than a day.

Cyberattacks in Canada resulted in revenue loss for 51% of affected businesses. Moreover, 58% of businesses that experienced cyberattacks reported that some, most, or all incidents were related to a supplier.

Looking ahead, 28% of businesses anticipate increasing their cybersecurity budgets beyond inflation, while 41% expect to keep pace with inflation over the next year.

However, the report noted that 25% of those surveyed do not have cyber insurance and 15% do not have an incident response plan to address a cyber event.

QBE also highlighted that nearly all Canadian businesses (94%) are either using artificial intelligence (71%) or looking into it (23%).

87% believe AI will positively affect Canada's economy in the next two years, and 86% expect AI to benefit their own businesses within the same timeframe. Those using or considering AI foresee enhanced efficiency and reduced costs, according to QBE.

Kyle Gray, technical underwriter team lead for cyber, emphasized the importance of robust internal digital security, as businesses are increasingly interconnected.

However, he warned, “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.”