UK government teams up with insurers to develop cyber protection market » SMEInsider

UK government teams up with insurers to develop cyber protection market

Three-fifths of British businesses suffered a cyber security breach last year, and with the cost of managing attacks escalating, the UK government is turning its attention to strengthening the domestic insurance market.

Hack attacks have been making headlines all over the world of late, with major data security breaches affecting leading chains and financial institutions as well as SMEs. Attacks are varied and increasingly complex, with hackers seeking out weak points in everything from centralised data storage to point of sale technology.

Security experts emphasise the need for businesses to be vigilant and to ensure that their data is thoroughly encrypted and meets compliance standards. However, with the cyber insurance industry still in its infancy in the UK, the government is anxious to ensure that businesses have access to protection when things do go wrong.

Earlier this month, the government met with the CEOs of 12 leading insurance companies to discuss options for collaboration. In a joint statement, the participants said that their aim is to “use insurance as a driver for improving cyber security practice in UK businesses, and SMEs in particular” and will issue a report on how this should be done in April 2015.

Cabinet Officer minister Francis Maude, who is responsible for the UK Cyber Security Strategy, said in a statement that “protecting the cyber-security of UK businesses is an important part of this government’s long-term economic plan – we want the UK to be one of the most secure places in the world to do business.”

He added: “we want to support the growth of a cyber-insurance market in the UK so we are very pleased to come together with the UK’s world-renowned insurance sector. Cyber-insurance does not replace the need for good cyber-security practice but is an added protection for businesses in the event of breaches.”

 

 

 

  • David Warren

    Couldn’t agree more, but cyber security insurance is closing the stable door after the horse has bolted. Proactive monitoring of your security provisions across your complete estate, on premise, cloud and mobile devices is a more effective defence.