Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2015
05

Cyber insurance products 'not trusted'

Open-access content Friday 1st May 2015 — updated 5.13pm, Wednesday 29th April 2020

Senior security heads are sceptical about cyber insurance products, according to a survey.

2

KPMG's latest survey of 70 information security workers found the most common reason for not purchasing a cyber insurance policy was the belief that insurers would not pay out on a claim.

KPMG said distrust would leave businesses vulnerable to the effects of cybercrime. The survey reported 74% of respondents stated their businesses had no cyber insurance in place. This was despite 79% believing cyber security threats would likely grow in the next 12 months. 

Mark Waghorne, head of KPMG's International Information Integrity Institute, said: "It is worrying to see that so many businesses would rather risk having no insurance in place to protect themselves against a threat they believe is very real."

The survey said 40% of those without cyber insurance were not convinced insurers would pay out, 30% believed the market for this product was not sufficiently mature, and another 30% felt they did not see the need for this kind of cover.

Waghorne said: "Insurers will need to deliver more comprehensive packages in order to convince the business community that they can and will protect against losses on cybercrime."

For businesses with cyber insurance, 48% felt policies might not pay out if they needed. 

"It is also disappointing that cyber insurance is viewed as providing little comfort to those who have it, as almost half don't believe they would be compensated properly if push came to shove," said Waghorne. "Organisations still buy the cover even though they are sometimes sceptical that it may or may not pay out in full, but for some, having cover is better than having none."

Last month, the firm carried another survey and found eight in 10 institutional investors would be reluctant to invest in a company that has been hacked.

This article appeared in our May 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

EU referendum outcome would have 'significant impact' on pensions, insurance and investment, warns IFoA

The result of a referendum on the UK’s membership of the EU could have a significant impact on how actuaries work, according to the IFoA.
Thursday 28th May 2015
Open-access content
2

Pet insurers pay out £1.65 million a day in claims in UK

Pet insurance claims cost £602m in 2014 in the UK, or £1.65m a day, according to the Association of British Insurers (ABI).
Tuesday 5th May 2015
Open-access content
2

Lack of awareness of professional indemnity insurance 'worrying'

A third of self-employed UK professionals do not know what professional indemnity insurance is, a study shows.
Wednesday 6th May 2015
Open-access content
2

Car modifications can almost double insurance premiums

Drivers who modify their cars by adding certain extras could see their premiums increased by up to 93%, a study shows.
Friday 8th May 2015
Open-access content
2

FCA criticises insurers' 'shortcomings' in presenting payment options to customers

Insurers and intermediaries are not being clear that customers will pay more when using credit to buy general insurance products, a review by the Financial Conduct Authority (FCA) has revealed.
Monday 11th May 2015
Open-access content
2

Interest in valuables insurance 'doubles' since Hatton Garden raid

The number of customers seeking to insure items stored in safety deposit boxes has doubled since a high-profile jewellery robbery in London, an insurer has said.
Friday 15th May 2015
Open-access content
Filed in
05
Topics
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ