Continuing cyber-attacks are having a devastating effect on businesses and the cost of incident response is growing every day. More companies are beginning to consider transferring risks to insurance providers.
Less than 20 percent of large organisations take out cyber-insurance, despite the growing awareness of vulnerability to breaches and risk management actions. For smaller and medium-sized businesses, the percentage is even lower at six percent, according to ABI Research.
The biggest obstruction to growth is the lack of actual data about cyber-attacks even though this fact continues to change with more cyber-assaults. Insurers find it hard to assign the proper value to data or systems, or determine policies since they are not fit to examine the cyber-risk environment of an organisation (also see earlier SC report).
“More information sharing, and understanding of event impact and the associate longer-term costs can help remove some of these obstacles. In turn this will drive better policy rates and see the cyber-insurance market progressively emerge from its niche,” says Michela Menting, research director.
ABI Research predicts the market to hit £6 billion by 2020.