An increasing number of businesses are beginning to take the clear and ever-present danger of cyber security a lot more seriously, and as a result of this the burgeoning cyber insurance industry is predicted to welcome a boom in interest over the next decade.
This is the forecast scenario of no lesser body than the Association of British Insurers (ABI), whose recently undertaken research has subsequently revealed that more and more companies are admitting a sense of vulnerability when it comes to the premise of cyber security. So much so, that the ABI fervently believe that cyber security will be commonplace across a plethora of UK industries by the year 2025.
Due in no small part to the significant reliance that business places on its IT function these days, the Association of British Insurers reckon that it’s no longer a case of ‘if’ but ‘when’ UK firms adopt cyber security protocol and practice as a mainstay; with the foreseen ‘when’ being cited as 10 years from now.
The ABI understand that for businesses to prosper and thrive in any economic climates they need to find more elaborate ways in which to safeguard themselves and the financial concerns of owners, employees, suppliers and customers to name but four core demographics. And as a by-product of ramping up any degree of cyber security provisions, cyber insurance will play a key role in adding that additional layer of protection.
In separate studies conducted by a Government department it transpired that 10% of organisations which have had its existing cyber security compromised by threats and/or attacks were forced to alter the nature of their business as a direct result.
Speaking recently about the heightened threat and incalculable risks posed by company’s cyber security being breached, ABI’s Director General, Huw Evans offered this; “Cyber risk is growing rapidly. At the moment, despite more than 80 per cent of large businesses suffering a cyber security breach in a 12 month period, only around 10 per cent have any form of cyber insurance”.
Recognizing such online infringements can potentially cost businesses millions of pounds (and therein threaten the on-going viability of companies), the ABI are only too aware that the stakes couldn’t be any higher.
Evans went on to explain that cyber insurance is a vital means of both countering and combating this threat, and underlined that the UK insurance industry is rapidly adapting to change and ultimately providing cover for cyber risk not only to British businesses but also for a global customer base.