Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Technology

63% OF ORGANISATIONS DON’T BELIEVE INSURERS WOULD HONOUR A CYBERSECURITY CLAIM

63% Of Organisations Don’t Believe Insurers Would Honour A Cybersecurity Claim

Confidence is so low that 32% of UK businesses don’t even bother with cyber liability insurance

A study has revealed that the UK is facing a crisis of confidence in its insurance sector. Speaking to 250 security professionals at this year’s Infosecurity Europe exhibition, very few have faith in cyber liability insurance, with 63% of respondents believing insurers would not actually honour a claim if one was made. In fact, trust is so low that 32% of UK businesses don’t even bother seeking this increasingly vital cover. With the costs of data breaches on the increase, costing an average $145 per record breached (according to recent figures from Ponemon Research [1]), organisations could find themselves not only out of pocket, but out of business if the worst should happen.

Jim Tyer, EMEA Channel Director for AppRiver – the cloud-based email and Web security specialist, said, “It’s alarming the high percentage of people who have little to no faith in the insurance industry. That said, and playing devil’s advocate a little, with as many as 91% of organisations claiming to have suffered a cyber attack [according to another report[2]], perhaps the insurance sector should issue a collective sigh of relief that nearly a third of organisations aren’t seeking cover!”

63% Of Organisations Don’t Believe Insurers Would Honour A Cybersecurity Claim

63% Of Organisations Don’t Believe Insurers Would Honour A Cybersecurity Claim

The study, sponsored by AppRiver, found that, amongst those respondents whose organisations were covered by cyber liability insurance (just 18%), special measures had been introduced as part of the policy requirements in 38% of cases. Just under a third (32%) said that this had not been necessary, with 39% unsure.

Tyer added, “An interesting calculation is that the probability of special measures being a requirement is at least one in every four policies. What this means for those respondents we spoke with during the show who were either unsure if their organisation had cover, and even those that did have cover but were unsure if they’d had to do anything different, 28% would find their policies (if they have one) invalid due to this mandate. That’s worryingly high.”

None of the respondents spoken with, who had cyber liability insurance, had had to make a claim on their policy. Tyer adds, “While this could be viewed as positive, it did raise two thoughts. Firstly, it means there’s no reassurance for the 63% of respondents whose faith in insurance is non-existent, unfortunately. However, more importantly, the likelihood that no-one has suffered a breach is unlikely meaning either a percentage of people lied, hadn’t made a claim even though they’d suffered a breach or, in my opinion the most probable, are blissfully unaware of their current security posture! Not a particularly comforting thought.”

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post