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 2019
08

Cyber insurance payout rate hits 99%

Open-access content Friday 9th August 2019 — updated 5.50pm, Wednesday 29th April 2020

A whopping 99% of claims made on cyber insurance policies were paid out in the UK last year, according to research by the Association of British Insurers (ABI).

2


The findings show that 205 of the 207 cyber claims made by ABI members were paid out in 2018, making this one of the highest acceptance rates across all insurance products.

However, just 11% of businesses are thought to have a specific cyber insurance policy in place, meaning millions of small businesses could still potentially be at risk.

The ABI said that the take-up rate is "worryingly low", and estimates that there is around £80m of cyber premium underwritten in the UK, compared with £1.1bn for pet insurance.

"Cyber insurance is a valuable product - the claims acceptance rates speak for themselves," ABI's director of general insurance policy, James Dalton, said.

"The additional support a business receives, beyond dealing with the pure financial losses, is a key attribute of most cyber insurance policies too often overlooked."

The ABI said that the UK could become a world leader in cyber insurance, but that an inability by insurers to access raw breach data risks limiting the potential of the market.

It has been asking the Information Commissioner's Office (ICO) to make anonymised cyber breach data publicly available, but the body has so far yet to agree.

The proposals would enable insurers to price risk more accurately and manage exposure more effectively by feeding this data directly into their modelling, according to the ABI.

It is thought that this would make cyber insurance more widely available, more accurately priced, and better tailored to each business.

The ABI said it would continue to work with the ICO to find a solution that enables both innovation and data privacy in the cyber market.

"Data is key to insurers' ability to better understand and more accurately price cyber risk," Dalton continued.

"We need the ICO to work with us to find what data can be shared to help insurers provide more cover to the many businesses that need it in this digital age."


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

This article appeared in our August 2019 issue of The Actuary.
Click here to view this issue
Filed in
08
Topics
Technology

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
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