Cyber insurance should viewed as ‘essential’ by UK businesses by 2025 says the Association of British Insurers (ABI). Online breaches can cost millions and would threaten the viability of many businesses according to Huw Evans, Director General at the ABI speaking at the Association’s conference on cyber insurance. He says that cyber cover is an increasingly important way for businesses of all sizes to manage the threat.
Cyber-attacks are one of the fastest growing forms of crime in the world. The ABI says that the pace of technological change means that it is increasingly difficult for businesses’ defences to keep up with the activities of criminals. “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{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of affected organisations had to change the nature of their business as a result,” said the Association.
The ABI’s views are backed up by a recent UK government report which says that 81{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of large businesses and 60{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of small businesses suffered a cyber-security breach in the last year.
“The threat of cyber-crime is increasing all the time,” said James Burgoyne, Director – Claims & Technical, Brunel Professional Risks. “Professional firms need to make sure that they have robust IT defences, backed up by effective cyber insurance that can meet the costs of dealing with a major attack should the worst happen. We can help our clients to identify and source cover for their needs.”
