Last week it was revealed that more than five and a half million cyber offences now take place in the UK each year, which accounts for around half of all crimes committed across the country. The stats were published as part of the annual Crime Survey of England and Wales (CSEW) and reported on in various national newspapers (e.g. the Telegraph).
This rise in cybercrime offences reinforces what we’ve been seeing as a cyber insurer. Whilst the CSEW survey is based on consumer crime, it’s easy to forget that the victims of these crimes aren’t just individuals, but businesses as well. In fact, we’ve seen a massive growth in claims involving cybercrime against businesses recently – a 78% rise in the last year – while inversely, claims for traditional crime have been steadily declining. As technology becomes even more ingrained in day-to-day business operations, we expect this trend to continue.
When we discussed the possible drivers behind this growth at our annual Cyber Symposium in November, a quarter of the firms noted that the prolific spate of high-profile breaches in the past year had led to a ‘fear factor’ concerning the likelihood of an impending and costly cyber-attack. Electronic computer crime was cited as the area of cover that was most likely to witness an increase in cyber insurance claims in the UK, while non-physical business interruption was expected to be the second biggest driver of demand.