Dutch SMEs invest €23,210 in cybersecurity

Dutch small and medium-sized enterprises (SMEs) invest an average of €23,210 per year in cyber resilience, the lowest amount compared to ten other countries surveyed. This is revealed in the tenth Hiscox Cyber Readiness Report, which surveyed 6,800 SME decision-makers in Europe and the United States. Although 39 percent of Dutch cyber decision-makers view AI-related risks as one of their biggest concerns, this awareness of risk does not seem to translate into higher investments in security. The international average for cyber expenditures is around €44,700.

Almost 25 percent of Dutch SMEs have experienced a successful cyber attack in the past year. These attacks are becoming increasingly sophisticated due to the use of AI technology, with an increase in deepfakes and automated phishing attacks, among others. The consequences of these attacks are significant; 73 percent of the affected companies reported a negative impact on work culture and employees, including stress and burnout. This underscores the need for companies to better protect themselves against cyber threats.

Despite growing concern, only 58 percent of Dutch SMEs have cybersecurity insurance, which is significantly lower than the percentage in the United States (79 percent). Most companies with cybersecurity insurance believe their policy covers AI-related risks, but there is little verification or confirmation of this coverage. This misunderstanding could discourage entrepreneurs from further investing in effective cybersecurity.

The report shows that companies are not resting on their laurels but are primarily focused on improving knowledge and skills. For the next three years, companies are mainly focusing on the internal organization of AI-related tasks, with an emphasis on software development and training. Only a small percentage (30 percent) suggest checking their insurance and coverage, despite many entrepreneurs believing they are already adequately protected. This highlights the need for SMEs not only to invest in technology but also in the training and awareness of their employees.

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