Cyber insurance remains the fastest growing insurance product in the market, globally. More and more businesses are becoming aware of the potential risks posed by cyber threats. This type of insurance provides protection against a wide range of cyber-related incidents, such as data breaches, hacking, and ransomware attacks.
One of the main reasons for the growing popularity of cyber insurance in the UK is the increasing frequency and severity of cyber-attacks.
Some stats for you:-
- 65,000 attempts to hack SME businesses in the UK daily with 4,500 being successful (Source : Hiscox)
- 64% of companies worldwide have experienced a cyber-attack (Source : CybInt Solutions)
- 32 billion breached records in 2022 alone! (Source : CShub.net)
- 300,000 new pieces of Malware are created daily (Source : Web Arx Security)
- Emails are responsible for 91% of all cyber-attacks (Source : Deloitte)
- Every 39 seconds, there is a cyber-attack (Source : University of Maryland)
In addition to the increasing frequency of cyber-attacks, the potential cost of a cyber incident is also a major concern for UK businesses. The National Crime Security Centre (NCSC) estimates that the average cost of a data breach for a UK business is £3.86 million. This cost can include everything from the cost of responding to the incident, to the cost of lost business and damage to a company's reputation.
Given the potential risks and costs associated with cyber incidents, it is no surprise that more and more UK businesses are turning to cyber insurance to provide them with protection. However, it is important to note that not all cyber insurance policies are created equal.
When looking for a cyber insurance policy, it is important to consider the type of coverage that is offered. Some policies may only provide coverage for specific types of incidents, such as data breaches, while others may offer broader coverage that includes protection against hacking and ransomware attacks.
It is also important to consider the limits of the policy. Many cyber insurance policies will have limits on the amount of coverage that is provided. It is important to ensure that the policy provides enough coverage to fully protect a business in the event of a cyber incident.
Another important consideration is the cost of the policy. The cost of cyber insurance can vary significantly depending on the type of coverage that is offered and the limits of the policy. It is important to discuss your requirements with a specialist advisor who can compare different policies for you.
In addition to purchasing a cyber insurance policy, it is also important for businesses to take steps to protect themselves against cyber threats. This can include implementing strong security measures, such as firewalls and intrusion detection systems, and providing employees with training on how to identify and respond to cyber threats.
In conclusion, cyber insurance is an increasingly important consideration for businesses. With the growing frequency and severity of cyber-attacks, and the potential cost of a cyber incident, it is essential for businesses to have protection in place. By carefully considering the type of coverage offered, the limits of the policy, and the cost, businesses can find the right cyber insurance policy to protect them against the ever-present threat of cyber-attacks.