Cybersecurity and insurance gaps pose rising risks to businesses

Recent studies highlight growing vulnerabilities for businesses, driven by human behavior and evolving digital threats. A MetaCompliance survey of CISOs in Germany, France, Sweden, and the UK found that 68 percent of respondents view employees as their organization’s greatest security risk. This is increasingly exacerbated by AI-powered social engineering attacks, which use sophisticated identity impersonation to bypass traditional detection.

Data from WatchGuard Technologies indicates that 64 percent of employees use unauthorized “shadow AI” tools for work. Other significant risks include the reuse of passwords (76 percent), sharing credentials with third parties (30 percent), and using public Wi-Fi for business purposes (70 percent).

Separately, the Hiscox Global Protection Gap Report 2025 reveals that 92 percent of self-employed individuals and small businesses are concerned about business risks, including inflation, theft, and cyberattacks. Despite this awareness, a significant insurance gap exists; up to 74 percent of small businesses in several European markets lack adequate coverage, with the figure standing at 70 percent in Germany. Many businesses have failed to update their insurance policies for over three years, even as their digital operations and scale have grown.