UK companies in stampede to take out cyber insurance
UK firms have finally woken up to the need to take out cyber insurance - with the number of companies who have cover rising from 33% to 90% within the past year - but many are failing to cover all risks.
According to a survey for Silicon Valley analytics firm FICO, carried out by Ovum, British firms are leading the way. In the other countries surveyed - the US, Canada, Brazil, Mexico, Germany, India, Finland, Norway, Sweden and South Africa - nearly a quarter of firms remain without coverage.
However, it was also found that just 38% of UK companies have insurance that covers all cyber threats, with most policies based on inaccurate risk assessments.
Ovum research director Maxine Holt said: “Although UK organisations perform well in terms of the uptake of cyber insurance, the fact that fewer than 40% have comprehensive insurance demonstrates there is still some way to go for these firms to have a broad view of their security position and how to present it for insurance.
"It could also show that these companies have a current security position that insurers are not prepared to cover comprehensively.”
Despite the recent introduction of GDPR, it was found that just 19% of businesses see privacy regulation as the major driver of cyber investment.
Increases in cyber attacks and pressure from customers or investors are the top two reasons for firms looking to increase their cyber insurance coverage.
FICO general manager for EMEA Steve Hadaway said: “Cyber security insurance has become a must-have for UK firms in a short period of time. But with growth will come increased pressure on insurers to increase transparency and fairness. Businesses will demand that their investments in cyber security drive premiums down.”