UK firms could soon be as likely to invest in cyber insurance as they are property insurance, according to a new forecast from the Association of British Insurers (ABI).
The industry body said today (May 5th) that cyber risk is growing so rapidly, insurance cover against hackers “should be the norm by 2025”.
Addressing the ABI conference on cyber insurance, director general Huw Evans said: “Online breaches can cost millions, and would threaten the viability of many businesses, so the stakes are high.
“Cyber insurance is an increasingly important way for businesses of all sizes to manage this threat.”
He added, however, that only ten per cent of UK firms currently have this kind of policy in place, despite four-fifths (80 per cent) of large organisations experiencing data breaches in a given year.
This means that a large proportion of businesses could be at risk of severe financial loss should they be hit by a cyber attack that causes service disruption or the loss or theft of sensitive data, potentially even leading to their closure.
“By 2025 this type of cover will be seen as an essential business purchase,” concluded Mr Evans.
late last year, a study carried out by Vanson Bourne on behalf of EMC Corporation claimed that data loss alone currently costs organisations a cumulative $1.7 trillion (£1 trillion) per annum.
This is equivalent to half of Germany’s gross domestic product and represents an increase of 400 per cent since 2012.
Asked if their firms would be able to recover were they to suffer data loss or downtime, whether as the result of human error, hardware failure or a cyber attack, almost three-quarters (71 per cent) said they were “not fully confident”.
Complex data recovery requires expertise. Speak to the data recovery industry pioneers at Kroll Ontrack for free advice to investigate options to recover from any data loss type, system or cause.