Lloyd’s of London is receiving more enquiries for protection against costly cyber attacks
Lloyd’s of London, one of the largest insurance markets in the world, has experienced rapid growth in the demand for insurance against cyber attacks.
Inga Beale, chief executive of Lloyd’s , said: “Cyber risk poses the most serious threat to businesses and national economies, and it’s an issue that’s not going to go away.
“The London market has a long, proud history of finding innovative solutions to insuring large, complex risks that are challenging to underwrite locally.”
Geoff White, underwriting manager for cyber, technology and media at Lloyd’s syndicate Barbican, said the market for cyber insurance had experienced a 50pc increase in insurance submissions during the first three months of the year, when compared to the same period in 2014.
“In general terms, we’re continuing to see new customers purchasing cyber insurance and existing customers purchasing higher limits following recent high profile attacks,” said Mr White.
Cyber attacks on business are the driving force behind the rapid rise in the insurance market. Sony pictures was rocked by a significant cyber attack last year that saw the leaking of sensitive internal emails and the suspension of a film release.
“In terms of our customers, approximately 70pc are first time purchasers. We’re also seeing customers in those sectors which were affected last year – and in particular in the retail sector – looking to buy higher limits,” said Mr White.
British banks were victim to one of the largest ever cybercrimes recorded this year when it was uncovered a Russian gang could have stolen up to £650m over two years.
Bank bosses have put cyber attacks as one of their biggest concerns, according to a PWC report.
Despite the rise in insurance cover, however, many UK companies are still exposed, with nine out of 10 UK small companies suffering from a data breach, according to the Government’s Information Security Breaches Survey Report.
This article was written by John Ficenec from The Daily Telegraph and was legally licensed through the NewsCred publisher network.