Cyber risk the most serious threat to business, says Lloyd's chief

[Audrey McNeil <audrey () riskbasedsecurity com>]

http://www.telegraph.co.uk/finance/11516277/Cyber-risk-the-most-serious-threat-to-business-says-Lloyds-chief.html

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.

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