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
  • August 2018
08

UK firms ahead of the curve for cyber insurance uptake

Open-access content Thursday 16th August 2018 — updated 5.50pm, Wednesday 29th April 2020

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

You may also be interested in...

2

Insurers told to embrace Amazon's planned comparison site

Amazon could become an important business partner for UK insurers should the retail giant choose to launch a new price comparison website, digital media firm GlobalData has said.
Thursday 16th August 2018
Open-access content
2

Three-fold increase in DB pension schemes targeting buy-outs

The number of defined benefit (DB) pension scheme trustees targeting buyouts with insurers in the UK has increased three-fold over the last five years, new research has found.
Friday 17th August 2018
Open-access content
2

Investors facing 'deteriorating' value in direct lending

Institutional investors are placing too much focus on mid-market corporate lending and are likely to see deteriorating future returns as a result, Willis Towers Watson (WLTW) has warned.
Wednesday 15th August 2018
Open-access content
2

MP Nicky Morgan heaps praise on IFoA's female mentoring scheme

A first-of-its-kind mentoring scheme designed to boost female representation among actuaries has received high praise from former secretary of state Nicky Morgan.
Friday 17th August 2018
Open-access content
2

One in three Brits 'financially vulnerable'

One-third of UK adults would not be able to cope with an unexpected financial shock or loss of income, while nearly a quarter have no savings to fall back on at all.
Wednesday 15th August 2018
Open-access content
2

Pension schemes warned of legal action for failing to tackle climate risks

The trustees of 14 UK pension schemes have received letters warning of imminent legal action should they fail to consider the financial risks associated with climate change.
Tuesday 14th August 2018
Open-access content

Latest from August 2018

Public back whiplash compensation reforms

The vast majority of UK adults back government plans to overhaul the way victims of road accidents claim compensation for personal injuries, a new survey has found.
Friday 31st August 2018
Open-access content

Calls to scrap pension tax relief

The UK government should abolish pension tax relief and replace it with bonuses on individual and employer saving contributions, the Centre for Policy Studies (CPS) has said.
Friday 31st August 2018
Open-access content

Pension trustees want TPR checklist for fiduciary management tendering

More than eight in ten pension investment managers and trustees would like to use a checklist provided by The Pensions Regulator (TPR) during the tender process for fiduciary managers and consultants.
Thursday 30th August 2018
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 08

Public back whiplash compensation reforms

The vast majority of UK adults back government plans to overhaul the way victims of road accidents claim compensation for personal injuries, a new survey has found.
Friday 31st August 2018
Open-access content

Calls to scrap pension tax relief

The UK government should abolish pension tax relief and replace it with bonuses on individual and employer saving contributions, the Centre for Policy Studies (CPS) has said.
Friday 31st August 2018
Open-access content

Pension trustees want TPR checklist for fiduciary management tendering

More than eight in ten pension investment managers and trustees would like to use a checklist provided by The Pensions Regulator (TPR) during the tender process for fiduciary managers and consultants.
Thursday 30th August 2018
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Exposure Management Analyst

London, England
£40000 - £50000 per annum
Reference
148639

Pricing - Casualty Actuary

London (Central)
£128K + bonus + benefits
Reference
148638

Reporting Contractor

Negotiable
Reference
148636
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

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