Latest research has shown worrying results, with as many as two thirds of UK firms admitting that they’re not insured against information security breaches and data loss.
The Risk: Value report compiled by NTT Security looked at the attitudes of 1,800 global senior decision makers from non-IT functions about risks to the business and the value of information security, and found that UK businesses would have to spend on average £1 million to recover from a breach.
While the UK compares poorly to other markets like the US and Singapore (53%) when it comes to insuring against both information security breaches and data loss, it still fares better than Benelux (27%) and the Nordics (23% in Sweden; 28% in Norway).
The UK also ranks second from last for having dedicated cyber insurance, alongside Germany (29%) and just above Benelux (27%).
Just six per cent of respondents in the UK say their company insurance covers only for information security breaches, while 11% are covered only for data loss.
However, the fact that nearly half (45%) of those surveyed do not know if their company insurance covers either of these is a concern, given that it is the highest figure for any of the countries in the report and well above the global average of 23%.
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I want to be a contractorKai Grunwitz, Senior VP EMEA, NTT Security, commented, “With estimated annual losses from cyber crime now topping $400bn (£291bn) according to the Center for Strategic and International Studies, you would hope more organisations would be beating a path to insurers’ doors. But while the insurance sector is certainly seeing growth in the number of policies being taken out to cover such losses, it’s an issue that many senior decision makers are not on top of.”
Grunwitz addsed, “While cyber risk insurance should be put in place to help mitigate the potential fallout of a data security breach, a policy must not be seen as a ‘get out of jail free’ card. Cyber insurance must be complementary to an effective risk-based information security strategy, not a replacement for it. You wouldn’t expect your house insurance provider to pay out if you were burgled when the doors and windows are left unlocked. So don’t expect a payout – or indeed an insurance policy – if you haven’t put in place the right processes and policies.”
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