Large UK firms may not see value in cyber insurance protection
Cyber insurance may be lacking among large businesses in the United Kingdom. The British government has released a report that suggests only 2% of large British firms have insurance coverage that will protect against cyber attacks. The report was jointly released with Marsh, a prominent insurance company, and recommends that businesses begin taking the risks that exist in the digital world more seriously. Following several high-profile cyber attacks, businesses and consumers could be at risk of exploitation if they do not have the appropriate protection.
Many business leaders are not aware that cyber insurance exists
The report highlights problematic issue among business leaders. Nearly half of those surveyed for the report noted that they did not even know that cyber insurance existed. Despite this, many firms in the United Kingdom consider cyber attacks to be among the leading risks they face in the world. The report suggests that cyber attacks are growing in frequency and severity, placing British firms at significant risk, especially because they do not have insurance protection against such attacks.
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Government support for cyber protection may not be needed at this time
The report recommends that the UK government and the insurance industry take steps to increase awareness and availability of cyber insurance. The government may not have to provide financial support for this coverage, however, as the report suggests that insurers can appropriately manage their risk and exposure in the digital world. Some insurers would like to see the government support the development of a cyber insurance pool similar to programs like Pool Re, which offers terrorism insurance that is subsidized by the government.
UK cyber insurance market is valued at $238 million
The UK cyber insurance market is valued at $238 million, which is more than 10% of the global cyber insurance market. Despite this, relatively few businesses in the country have cyber insurance protection. Those without this protection could see significant financial losses as the result of a digital attack, such as a data breach. Insurance coverage could help offset the financial impact of such attacks.