Cyber-insurance on the rise, finds report

The number of businesses taking on cyber-insurance this year is already demonstrating a rapid increase from 2014, according to a Lloyds of London report. Protection against the impact of cyber-security breaches has been the main motivation for enterprises, illustrated by a 50 percent increase of insurance submissions in the past three months alone, according to UK insurance companies.

“In principle, the growth of cyber security insurance is very welcome especially if it grows alongside better corporate risk mitigation strategies, to avoid it offering a false sense of security,” Richard Pharro, CEO of APM Group, commented in an email to SCMagazineUK.com.

“Greater awareness and interest by the insurance industry,” Pharro continued, “should encourage more companies to include cyber security as a key risk and, hopefully, extend this awareness to supply-chain resilience, third party providers, and their own employees.”