UK Lack of Cyber-Insurance Exposed

A UK Government report says, about 98% of large UK firms lack insurance that could help them recover from a serious cyber-attack.

According to the report, 81% suffered a security breach in the last 12 months. The report aims to convince firms to buy insurance to help them manage escalating cyber-threats.

Insurance can show companies how to cope better with attacks and understand the risks they face.

The report revealed that a tiny fraction of large UK firms have taken out insurance that could help pay the cost of recovering from a serious security breach. Whilst in smaller firms, cyber-insurance was almost unheard of.

A separate security survey, in 2014, suggests the average cost of a serious security breach on large firms was £600,000 and £1.15m to recover from. Whilst for smaller firms, costs are £65,000-£115,000.

“The cyber-threat remains one of the most significant – and growing – risks facing UK business,” said Cabinet Office Minister Francis Maude in a statement.

He went on to say, “Insurers can help guide and incentivise significant improvements in cybersecurity practice across industry by asking the right questions of their customers on how they handle cyber-threats,” said Mr Maude.

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Source: BBC News, 23rd March 2015, http://www.bbc.co.uk/news/technology-32015383, Retrieved: 11th January 2016.

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