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BizReport : Internet : February 13, 2015

U.K. businesses trail U.S. in cyber insurance take-up

Implementation of cyber insurance policies is far more commonplace among U.S. businesses than those in the U.K., according to a recent whitepaper from not-for-profit security group the Corporate Executive Programme.

by Helen Leggatt

The study found that just 13% of companies in the U.K. with an annual turnover of $1 million to $1 billion have dedicated cyber insurance. That's despite Government-led initiatives with the insurance industry last year to improve awareness.

Across the Atlantic, some 40% of U.S. companies had dedicated cyber insurance.

Of the senior business officials interviewed by Corporate Executive Programme (CEP) at 30 U.K. and 10 U.S. businesses from the financial, manufacturing, I.T. and retail industries, a quarter "set aside their own money to deal with any unexpected potential losses, incidents or contemplated risks". Twenty-three percent advised that their existing general business insurance covers cyber risk. A fifth of all businesses had no cyber insurance at all.

"This apparent trend for lower levels of dedicated cyber insurance in the European region may change with the pending EU data breach notification rules for data controllers under the draft General Data Protection Regulation and the proposed cyber breach notification rules for critical infrastructure providers under the draft Network and Information Security Directive," CEP said. "These changes could become a catalyst for an upsurge in cyber cover in Europe."

Image via Shutterstock

Tags: cyber security, insurance

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