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Cyber Threats Dominate Business Concerns
Cyber threats continue to be a top concern for U.S. businesses. That is according to the 2025 Travelers Risk Index. Recent events underscore the “no kidding” reaction we had to the findings. A ransomware attack on airport systems disrupted travel worldwide. Automaker Jaguar Land Rover, with sales and distribution networks spanning continents, halted production after a cyberattack. These disruptions underscore the profound impact of cyber threats on businesses and individuals.
The report finds that large and medium-sized companies prioritized cyber risks over other challenges. Yet, fewer leaders reported that the overall business environment feels riskier than it did last year. Travelers surveyed more than 1,200 business decision-makers nationwide, representing diverse industries and company sizes. The survey measured experiences with cyberattacks, risk management strategies, and adoption of cyber insurance.
Economic Worries Return to the Forefront
While cyber threats dominated among larger firms, the survey ranked them third overall. Broad economic uncertainty and medical cost inflation tied for first place. Fifty-eight percent of respondents highlighted these as major risks. Cyber risks followed at 56%, with global economic impacts and supply chain issues rounding out the top five.
Within the cyber category, system breaches and hacking attempts ranked highest among fears. Concerns about stolen data and operational shutdowns drove many leaders to place cyber at the top.
Declining Sense of Risk
This year’s index revealed a shift in perception. Only 40% of respondents said the business environment is becoming riskier. That number dropped from 51% in 2024. Concern over cyber threats followed the same trend. Fifty-six percent reported a high level of concern, compared to 62% last year. This was the lowest level of concern since 2020.
Among large companies, belief in the inevitability of an attack also fell. In 2025, 62% considered a cyberattack inevitable, down from 70% in 2024. The decline suggests some firms may feel more confident in their defenses. However, experts warn against complacency.
Cybersecurity Gaps Remain
Amid the reduced anxiety, some telling responses regarding how many businesses address cybersecurity measures. More than 20% admitted failing to use basic protections. The survey found that 24% lack firewall systems and 24% do not back up critical data. Another 29% fail to enforce password changes, and 29% leave software updates incomplete.
Travelers executives stressed the importance of vigilance. “The key to successful cyber mitigation is staying ahead of it,” said Lauren Winchester, Vice President of Cyber Risk Services. She warned that complacency leaves companies vulnerable to active attackers.
Rising Number of Cyber Incidents
The report showed a continued increase in cyber incidents. For the ninth time in ten years, the percentage of companies hit by a cyber event grew. In 2025, 25% of respondents reported experiencing a data breach or similar event. That compares with 24% in 2024.
The rise in incidents underscores the gap between awareness and action. Many companies recognize the danger yet delay critical protections. Failing to invest in cyber defenses creates long-term vulnerabilities that attackers can exploit, ultimately leading to significant risks.
The Case for Cyber Insurance
The survey also examines the role of cyber insurance. Many companies now view coverage as a vital safeguard. Insurance complements security programs by covering potential financial losses. Firms with cyber policies often report greater confidence in their ability to withstand attacks.
John Menefee, Enterprise Cyber Lead at Travelers, stressed the stakes. “Being aware of the risks and implementing a cybersecurity program can separate businesses that thrive from those derailed by devastating breaches,” he said.
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A Call for Continuous Investment
The Travelers report presents a clear picture that aligns with other similar works and real-world events. Cyber threats remain one of the most persistent challenges for U.S. businesses. The frequency of incidents continues to rise, even as concern levels ease. The report warns that cyber complacency could leave firms exposed to future disruptions.
Companies must take action by strengthening defenses, investing in training, and purchasing cyber insurance. Security is not a one-time effort but a continuous process. Attackers evolve constantly, and defenses must adapt to keep pace.
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