UK government to launch initiatives to promote cyber insurance coverage
Cyber insurance is kicking off in the United Kingdom. The government has announced several join initiatives that are designed to improve the stability and availability of cyber insurance in the country. The UK Cabinet Office and Marsh, a prominent insurance company, have partnered to launch these initiatives in order to protect companies from cyber attacks. Recently, the two organizations published a report that shows that the majority of British firms lack the appropriate level of cyber protection.
Report shows that only 10% of British companies have purchased cyber insurance coverage
According to the report, 81% of large companies and 60% of small businesses in the United Kingdom lack any kind of cyber insurance. This leaves them and their customers and clients exposed to the damages that can be caused by data breach and other digital attacks. The report also revealed that 51% of CEOs believe that their companies have insurance protection against cyber attacks, but this is not actually the case. Conventional insurance policies do not offer protection against digital risks, and only 10% of British firms have actually purchased cyber insurance specifically.
New initiatives will help make insurance coverage more available in the UK
The new initiatives launched by the government are meant to increase the availability of cyber insurance throughout the country. The growing frequency of cyber attacks, as well as the damage they can cause, has highlighted the need for protection, but relatively few insurers offer coverage for digital risks. Because of these risks, insurers are somewhat wary of providing coverage to the large number of companies that need it. As such, some insurers have called for the creation of government-aided programs that will make coverage more accessible and reduce the risks that insurers experience.
Cyber insurance is not an adequate form of cyber security
Notably, insurance coverage is not a suitable form of cyber security. This coverage kicks in after a cyber attack and is not designed to prevent such attacks from happening. As such, the UK government is beginning to highlight the need for security to be taken more seriously. Insurance coverage can help companies recover in the wake of a cyber attack, but appropriate security measures should be in place in order to avoid such attacks.