Hong Kong SMEs Increasingly Digitalized, Yet Less Aware of Cyber Threats, QBE Survey Reveals

Hong Kong SMEs Increasingly Digitalized, Yet Less Aware of Cyber Threats, QBE Survey Reveals

A new survey conducted by QBE Hong Kong has shown that small-sized enterprises (SMEs) in Hong Kong are becoming increasingly digitalized and less aware of cyber threats. The study revealed a drop in cyber risk awareness from 43% in 2021 to just 36%. This decrease comes despite an increase in reported cyberattacks to the government's computer security centre.

E-commerce has played a significant role in the rapid digitalization of Hong Kong SMEs, with approximately four out of five (82%) businesses now buying and/or selling goods or services over the internet. This figure is similar to last year's level at 81%.

The survey also highlighted an upward trend in online insurance purchases among local SMEs. Businesses are becoming more comfortable conducting transactions online, including purchasing insurance policies.

Samuel Chan, Director of QBE General Insurance (Hong Kong) Limited commented on these findings: "It is encouraging to see that e-commerce continues to be widely adopted by local businesses as they explore new ways to reach customers and improve efficiency. However, it is concerning that many companies may not be adequately prepared for potential cyber risks."

As part of their annual research initiative focused on understanding market trends related to technology adoption and cybersecurity practices among SMEs, QBE examined data collected from various industries across Hong Kong.

Their analysis indicates a need for increased awareness around cybersecurity measures as well as investment into robust defenses against evolving digital threats.

"We strongly encourage all employers – regardless of size –to prioritize cybersecurity," said Ada Wong, Chief Risk Officer at Shanghai Insurance Limited. "With more business operations moving online due to COVID-19 restrictions or other factors like convenience and accessibility; it's crucial that organizations take steps now before vulnerabilities become exploitable."

QBE recommends fostering greater collaboration between industry stakeholders such as insurers and IT professionals when it comes to assessing cyber risks and implementing appropriate security measures. This partnership can help create a more proactive approach in addressing the growing threat landscape.

As Hong Kong SMEs continue to embrace digital transformation, it's crucial that they also recognize the importance of safeguarding their businesses from potential cyber threats. By increasing awareness and investing in comprehensive cybersecurity strategies, companies will be better prepared for future challenges and ensure long-lasting success.

To find out more about QBE's annual survey on technology adoption trends among local enterprises, visit QBE.com/bebekkong & Shanghai Insurance Limited, QBE General Insurance (Hong Kong) Limited, and QBE Mortgage Insurance (Asia) Limited websites.