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Will the UK become a world leader in cyber insurance?

The Association of British Insurers (ABI) has released that it is pushing for a national database which records all details of cyber incidents that have occurred across UK based companies. The foundation of the database may lead the way for growth and the global positioning of the UK cyber insurance market.

In 2014 a UK Government survey found that over 81% of large firms and 60% of small businesses have experienced a cyber breach in one form or another. Cyber attacks are viewed as one of the highest levels of risk to national security by the UK Government. The costs of managing a breach could set a company back millions of pounds (dependent on its size). Hugh Evans from the ABI commented on such cases as being some of the ‘the biggest threats to Britain’s world leading digital economy’.

As cyber is one of the biggest insurable risks in the insurance market, it is understandable why a database of the breaches would be of great interest and use, while also being a world first putting the UK steps ahead of other countries progress in managing the cyber threats and attacks. Such a database will hopefully assist in companies understanding of the cyber breaches, in particular those smaller businesses who are ever becoming the most popular victims of such attacks. The Federation of Small Businesses (FEB) have commented that it is mostly the smaller businesses in the UK which are fighting to cope with the ever growing complexity and level of attacks.

The ABI firmly believes that cyber policies are set to become one of the most popular policies to purchase for companies of all sizes. Having a national database will provide an educational and factual system allowing the UK insurance market to develop in both it’s knowledge and provision of cyber policies.