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
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • August 2018
08

UK firms ahead of the curve for cyber insurance uptake

Open-access content 16th August 2018

The number of UK businesses with cyber insurance has increased from around two in three to a whopping nine in ten over the last year, with uptake much higher than in many other countries.

2


That is according to new research by Ovum, which shows that a quarter of firms in the US, Canada, Brazil, Mexico, Germany, India, Finland, Norway, Sweden and South Africa remain without coverage.

However, it was also found that just 38% of UK companies have insurance that covers all cyber threats, with most policies based on inaccurate risk assessments.

"There is still some way to go for these firms to have a broad view of their security posture and how to present it for insurance," Ovum research director, Maxine Holt, said.

"It could also show that these companies have a current security posture that insurers are not prepared to cover comprehensively."

The research is based on a global survey of businesses with more than 500 staff, and was commissioned by Silicon Valley analytics firm FICO.

It was found that far more UK companies expect to increase their cyber security than last year, rising from 48% to 64%, with financial services firms raising their budget most.

Despite the recent introduction of General Data Protection Regulation (GDPR), it was found that just 19% of businesses see privacy regulation as the major driver of cyber investment.

Increases in cyber attacks and pressure from customers or investors are the top two reasons for firms looking to increase their cyber insurance coverage.

Of the sectors studied, power and utilities companies were particularly sceptical about how premiums are calculated - over half said they don't believe they reflect their risk profile.

"Cyber security insurance has become a must-have for UK firms in a short period of time," said Steve Hadaway, FICO general manager for Europe, the Middle East and Africa. 

"But with growth will come increased pressure on insurers to increase transparency and fairness. Businesses will demand that their investments in cyber security drive premiums down." 

Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our August 2018 issue of The Actuary.
Click here to view this issue
Filed in:
08
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Analyst - Pensions to Life

London (Central)
study support, package
Reference
119042

Reinsurance Technician

London (Central)
Negotiable
Reference
119041

Pricing Actuary/Analyst (Casualty)

London, England
£60000 - £80000 per annum
Reference
119040
See all jobs »
 
 
 
 

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
​
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

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200