The latest report from the Association of British Insurers (ABI) shows that the payout rates under cyber insurance are at an all time high of 99% – yet still the majority of UK businesses are potentially unprotected.
Despite this, the take-up rate of cyber insurance by businesses in the UK is still worryingly low, with the overall market size estimated at less than a tenth of the size of the UK’s pet insurance market**. Just 11% of businesses are thought to have a specific cyber insurance policy in place, meaning millions of small businesses could be at risk.
Cyber cover provides extensive services focused on preventing a breach from occurring in the first place, as well as helping with the recovery and management of costs associated with an attack. Recent high-profile cases of cyber breaches have included British Airways and Marriott International, which highlight just how important this type of cover is.
James Dalton, the ABI’s Director of General Insurance Policy, commented:
Cyber insurance is a valuable product – the claims acceptance rates speak for themselves and the additional support a business receives, beyond dealing with the pure financial losses is a key attribute of most cyber insurance policies, too often overlooked.
The full ABI article can be found here.
Cyber-attacks are no longer a matter of if, but when.
Reacting to an inevitable breach takes more than just threat neutralisation. The UK Government Cyber Security Breaches Survey 2019 revealed that 32% of businesses have experienced a cyber-attack in the last 12 months and the threat is set to rise as cyber criminals use increasingly sophisticated techniques to perpetrate their crimes.
What’s more, 30 per cent of businesses reported suffering negative impacts from a cyber-incident in the last year—including temporary loss of access to files or networks, corrupted or damaged software systems and websites, or online services either taken down or slowed.
Cyber Insurance has never been more important for businesses to consider and can help with:
- Cyber incident response costs – including IT forensics, legal, breach notification and crisis communications.
- Cybercrime – including social engineering, theft of personal funds, cyber extortion, ransomware, attacks and unauthorised use of computer resources.
- System damage and business interruption – including full data re-creation, income loss and extra expense, additional extra expense, consequential reputation harm and hardware repair and replacement.
- Network security and privacy liability – including management liability arising from a cyber event and regulator fines and penalties.
- Media liability – including defamation and intellectual property rights infringement.
- Technology errors and omissions.
- Court attendance costs.
FOCUS can provide you with Cyber Insurance solutions to suit your needs – and a comprehensive Cyber Incident Response Plan & Toolkit.
To view an extract of the toolkit, click here.
To find out FOCUS can help you choose the right cyber insurance solutions or to request a copy of the Cyber Incident Response Plan & Toolkit – simply email us at firstname.lastname@example.org.