66% of UK Companies Do Not Have Cyber Risk Insurance Policies

NTT Security’s new report showed that 66% of UK’s senior officers confirmed that their organizations are not ready to cover adequately the fiscal effect of data loss in the event of a data breach. This is in spite of the point that 81% of them concur that companies ought to have an insurance coverage in case that serious data breaches do happen.

The NTT report evaluated the answer of 1,800 worldwide senior executives with non-IT roles to business threats and the significance of data security. It revealed that British organizations are going to need an average sum of £1 million so as to recover from a sizeable security breach.

When compared with other nations around the world, the U.S. and Singapore (53%) market works better than UK’s in terms of having insurance coverage against information breaches and loss of data. Nevertheless, UK businesses perform better compared to Benelux (27%) and the Nordics (23% in Sweden and 28% in Norway). The U.K. is additionally next to Benelux (27%) from the lowest in terms of having cyber-specific insurance policy.

11% of UK participants have insurance coverage for loss of data and only 6% affirm that their organizations have insurance protection for security breaches. Nonetheless, it’s sad to learn that 45% of the participants know that their business insurance have neither of these. The report additionally revealed that the number of insurance organizations that provide cyber insurance via Lloyd’s of London grew to over 70 in 2018, which is twice the amount as opposed to a couple of years ago.

As per Kai Grunwitz, the senior VP for Europe at NTT Security, even though the approximated yearly deficits from cyber crimes has already hit $400bn (£291bn), the insurance industry is still finding more insurance policies being pulled out to cover such deficits. It shows that a lot of senior executives aren’t putting this issue first.

Kai Grunwitz additionally mentioned that cyber risk insurance coverage must indeed be given priority to help offset the potential deficits stemming from a security breach. However cyber risk insurance must be acquired to go with an efficient risk-based data security plan. The proper procedures and policies should be set up.

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Christine Garcia is the staff writer on Calculated HIPAA. Christine has several years experience in writing about healthcare sector issues with a focus on the compliance and cybersecurity issues. Christine has developed in-depth knowledge of HIPAA regulations. You can contact Christine at [email protected]. You can follow Christine on Twitter at https://twitter.com/ChrisCalHIPAA