Cyber attacks are perceived as the biggest external risk for New Zealand businesses this year, according to an annual Marsh survey.

The threat ranks ahead of disruption from natural catastrophes in the poll, which was conducted before the Kaikoura earthquake in November.

“Cyber attack did not even rank in the top five risks in our 2013 survey, showing the speed at which this dynamic emerging risk is changing, at least in the minds of directors,” Marsh New Zealand Country Head Marcus Pearson said.

“It comes as no surprise there is frustration at the perceived slow progress of affordable, practical insurance protection for cyber-related risks as insurance companies struggle adapt to the pace of change.”

About 79% of respondents rate cyber attack as a medium or high risk, amid increased publicity around the threat.

Data from New Zealand’s National Cyber Security Centre shows a 25% increase in the number of data-loss incidents from July 2015 to June last year, and a 47% increase in the value of losses, according to the Marsh report.

The survey also shows 75% of directors consider an IT disruption to be of high or medium internal risk.

Nearly two-thirds of directors think this year will be riskier than last year.

Most respondents indicate a moderate or significant increase in board involvement in risk management, with health and safety legislation cited as the main reason. Mr Pearson says the trend is positive, particularly amid challenges from technological change.