What is the insurance industry doing to help UK businesses prevent and recover from cyber crime and attacks?
The threat of cyber crime facing UK businesses is increasing. The Department for Culture, Media and Sport recently found that 55 per cent of companies have identified a cyber-breach in the last 12 months (source). If you want to scare yourself even more, take a look at a recent 2018 report that has gathered up various statistics on the subject too: https://www.vpngeeks.com/reviews/21-terrifying-cyber-crime-statistics-in-2018/
It is more imperative than ever for firms to be insured against the risks, but robust insurance cover is not all the industry can provide.
How insurers are supporting their customers who have suffered cyber crime claims
Insurers and brokers are ideally positioned to deliver ‘added value’ to clients by using their insight and expertise to offer more than just a policy. Their experience of identifying risk can help minimise the potential for breaches and they can guide their clients through damage limitation should an attack occur.
This is especially true for the insurers and brokers working with SMEs, which are less likely to have an in–house resource to face cyber threats compared to large businesses. Cyber security may also be lower priority, with SMEs lulled into a false sense of security that they are too small to be targeted.
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However, figures from the Federation of Small Business suggest the opposite. Seven million cyber-crimes are committed annually against UK SMEs and, on average, each incident costs nearly £3,000 and takes more than two days to recover from.
Insurers and brokers can help by highlighting the potential cyber crime vulnerabilities, recommending methods to bolster security and provide guidance about the most appropriate products needed to protect against a threat. Insurers can offer a ‘business continuity add-on’ to its cyber crime insurance policy. This can be a lifeline for smaller companies, where disruption could have severe and lasting financial implications.
Coping with the results of cyber crime
However, cyber-attacks can’t always be prevented, so insurers and brokers must also guide their clients through the aftermath. By sharing knowledge and experience, they can help businesses resume trading as soon as possible and ensure they understand their obligations to customers and, where applicable, to regulators.
Assuming you have cover, in the event of an attack, your insurer can help you establish which elements of the business need to work together to resolve the issue, often, the requirement normally goes beyond just IT and includes customer communications, marketing and HR before you can get your businesses back on your feet.
Prevention and cure should play equal roles in providing the necessary support when businesses are at their most vulnerable. As well as improving customer loyalty and retention, adopting this service based approach also ensures the industry remains at the forefront of the fight against the rising challenge of cyber-attacks.
Cyber crime is on the rise … it is more imperative than ever for firms to be insured against the risks, and to seek support should the worst happen.