Can businesses afford to ignore cyber insurance?

      Comments Off on Can businesses afford to ignore cyber insurance?

Can businesses afford to ignore cyber insurance?As the threat of cybercrime grows in quantity and scale, so too does the need for insurance cover. CFC, which recently came out top in the Insurance Times Cyber Product Report, is a pioneer in cyber insurance. The London-based specialist lines insurance provider has witnessed a dramatic rise in the size of ransomware demands – which are now reaching six, and even seven, figure sums.

While some industry pundits still insist that the best policy is to refuse payment, the potential cost of notifying customers, forensics, credit monitoring and restoration of reputation can be punitive – especially for an SME. As well providing financial cover, a good cyber insurance policy will all provide immediate access to legal, technical and communications assistance if a cyber incident occurs.

The UK cyber insurance market is modest in comparison with America – with as few as twenty specialist underwriters and brokers and annual premiums of roughly £50m – while the US market could now be worth as much as $2.5-$3bn. On the one hand, more insurance pay-outs may encourage more ransomware demands. Conversely, in the wake of attacks like NotPetya and WannaCry and new regulations such as GDPR, can any responsible business afford to go without?