The Department for Business, Innovation and Skills (BIS) has revealed new joint initiatives between government and insurance companies to develop the UK’s grasp on cyber security.
The Department recently publishing a report in conjunction with insurance broker Marsh called UK Cyber Security: the role of insurance in managing and mitigating the risk.
It claims that last year, 80% of large businesses and 60% small businesses suffered a cyber security breach and so examines the part insurance can play in an organisation’s toolkit.
The initiatives outlined in the document intend to establish the UK as a world leader in cyber security insurance.
“It is part of this government’s long-term economic plan to make the UK one of the safest places in the world to do business online,” claimed Minister for the Cabinet Office Francis Maude.
“The UK’s insurance market is world renowned and we want it to be the same in relation to cyber risks.
“The market has extensive knowledge and experience of more established risks to help businesses manage and mitigate relatively new cyber risks.
“Insurance is not a substitute for good cyber security but is an important addition to the company’s overall risk management.
“Insurers can help guide and incentivise significant improvements in cyber security practice across industry by asking the right questions of their customers in how they can handle cyber threats,” he added.
According to the BIS report, less than 10% of businesses in the UK have cyber security insurance despite 52% of CEOs believing they have some sort of coverage in place and acknowledging that cyber threats are an increasing problem.
Firms offering cyber security insurance will now adhere to the government’s Cyber Essentials scheme, making it easier for smaller firms to get coverage.