Cyber insurance should become as common a purchase for UK businesses as property insurance within the next 10 years, the Association of British Insurers has said.
Any company which uses the internet is vulnerable to dangers including deliberate attacks by thieves and data losses caused by human error, and the ABI believes cyber cover should be the norm by 2025.
The five key reasons cyber policies are becoming a business essential are:
- Cyber crime is one of the fastest growing forms of crime in the world. It operates across international borders and attracts organised criminal gangs.
- Cyber threats are at the cutting edge of technology.The nature of threats changes so rapidly that it’s almost impossible for individual companies to keep their defences ahead of the game.
- Businesses are increasingly dependent on IT for their everyday activities.It is not just information being stored online, companies are increasingly operating telephone and payment systems through computer-based technologies.
- Cyber attacks and failures can result in businesses closing or having to dramatically change what they do.The latest government survey on information breaches found 10% of affected organisations had to change the nature of their business as a result.
- The British insurance market is already able to offer businesses the innovative protection they need.The market in London is responsible for more than 10% of global cyber insurance business, the majority of that is from the US.
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Source: Association of British Insurers.