UK firms are increasingly protecting themselves with cyber security risk insurance, but nearly a third of them haven’t yet taken out insurance. A new survey conducted by research and consultancy firm Ovum for FICO reveals that, even among those companies that do have insurance, only 28% said they have cyber security insurance covering all risks.
Even though the majority of businesses surveyed have cyber security insurance, most suggest that the risk assessment process insurers use needs improvement. Just 31% of respondents think their premiums reflect an accurate assessment of their risk. Nearly as many, 29% in fact, said they don’t believe the assessment accurately reflects their risk, while 11% observed that they don’t know how their insurance is priced.
“The UK will soon be subject to the EU’s General Data Protection Regulation, which introduces higher fines in cases of data breach,” said Steve Hadaway, FICO’s general manager for Europe, the Middle East and Africa. “Even if attacks don’t increase in volume, firms could end up paying more, which makes having comprehensive insurance in place even more important. At the same time, companies have a right to expect that they will pay less if their protection is better. The onus is very much on the cyber security insurance industry to make sure insurance rates are fairly set for each individual firm based on a sound analysis of the risk.”
Ovum conducted the survey for FICO through telephone interviews with 350 corporate executives and senior security officers based in the UK, the US, Canada and the Nordics during March and April of this year. Respondents represented businesses operating in sectors including financial services, telecommunications, retail, e-commerce and media services.
*Read the White Paper in full: http://www.fico.com/en/latest-thinking/white-paper/what-the-c-suite-needs-to-know-about-cyber-readiness