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
  • Sections
  • News

Pension schemes remain uninsured for cyber risks

Open-access content Wednesday 27th April 2022
Pension schemes remain uninsured for cyber risks

Nearly half of UK pension schemes still do not have insurance against cyber attacks, and a similar proportion are lacking the specialist skills needed to deal with the threat.

That is according to a new report from risk advisory firm Crowe, which surveyed pension scheme trustees on the challenges facing them as fraud and cybercrime levels rise.

Worryingly, 43% of respondents said that they had not tested the strength of their scheme's IT systems, processes and procedures for cybercrime protection, while 47% did not have insurance against cyber attacks.

The survey also found that 42% of pension schemes did not have access to the specialist skills needed to investigate cybercrime incidents – rising to 50% of small schemes – and that 5% had no response plan in place at all.

This is despite cybercrime incidents increasing by 113% between April 2020 and September 2021.

“Fraud and cybercrime are the crimes of the 21st century, accounting for over half of all crimes in England and Wales,” said Jim Gee, partner and national head of forensic services at Crowe. 

“With their high volume of payments to members and the amount of personal data held, pension schemes are seen as attractive targets by fraudsters. Trustees need to not only be aware of that fact, but act on it and implement preventative measures to mitigate the threat and impact of an incident.”

Looking at specific challenges, the report highlights member identity theft as a real risk, with 29% of pension schemes failing to use electronic ID verification for UK members. 

The danger is even greater with overseas members, as 63% of schemes do not have electronic ID verification set up for them.

Third-party suppliers are another risk area to focus on, with 28% of respondents surveyed having not assessed the vulnerability of their suppliers to cybercrime. That figure rises to 43% for small schemes, and 33% for medium schemes.

Crowe said that trustees could also benefit from further training, with 49% yet to receive scenario-based training on dealing with cybercrime.

“The risk of a cyber attack is more of a ‘when’ than an ‘if’ today,” Gee continued. “Much more needs to be done as the likelihood and sophistication of attacks continue to rise.

“Trustees would be well advised to look further into testing their scheme’s IT processes and systems and they must not neglect supplier risks too. Suitable insurance to cover cybercrime incidents should also be a consideration.”

 

Image credit: iStock

Author: Chris Seekings

You may also be interested in...

TPR urges schemes to prepare for volatile funding positions

TPR urges schemes to prepare for volatile funding positions

The Pensions Regulator (TPR) has today urged schemes to be alert to volatile investments and funding positions during the current economic climate.
Wednesday 27th April 2022
Open-access content
Data loss among top risks for directors

Data loss among top risks facing directors and officers

Directors and officers see cyber attacks and data loss as their top risks following the pandemic and rising geopolitical tensions, an annual poll by WTW and Clyde & Co has found.
Monday 25th April 2022
Open-access content
Competition for space set to exacerbate geopolitical risks

Competition in space set to exacerbate geopolitical risks

Rising competition for land, sea and space is set to drive new geopolitical tensions over the coming years, according to a report from insurance broker Marsh.
Tuesday 10th May 2022
Open-access content
rea

Pensions: proceeding with prudence

Phil Hardingham and Keith McInally discuss linking scheme funding valuations to the cost of CDI assets, and what prudence looks like in this context
Wednesday 4th May 2022
Open-access content
Quarter of UK savers fear for retirement prospects

Quarter of UK savers fear for retirement prospects

One-quarter of UK workplace pension savers do not believe that their current levels of saving will allow them to get by in retirement, the Pensions and Lifetime Savings Association (PLSA) has found.
Wednesday 20th April 2022
Open-access content
Covid could slash pension liabilities

Covid and cost-of-living crisis could slash pension liabilities by 2%

There will be a modest increase in mortality rates following the COVID-19 pandemic and cost-of-living crisis, potentially slashing UK pension scheme liabilities by up to 2%.
Tuesday 10th May 2022
Open-access content
Filed in
News
Topics
Risk & ERM
Pensions
Technology
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