Yet another study confirms the need to push cyber insurance as a product this year. Research and consulting firm GlobalData has released a new report which says that only one in 10 SMEs in the UK is covered against cyber risk.
According to the firm’s latest report, the uptake of cyber insurance by British SMEs has grown from 2.1% in 2014 to 13.7% in 2016, a relatively low figure compared to other commercial insurance products.
“SMEs are increasingly threatened by cybercriminals or system failures which a cyber insurance policy could help protect against,” says GlobalData analyst Danielle Cripps, adding that any business that holds personal data is vulnerable to cyberattacks.
“Any business that holds personal information that can be sold on or used for identify fraud is vulnerable to cybercrime.”
Cripps is also reminding insurers and brokers that more UK companies will be required to have cyber cover due to the EU’s General Data Protection Regulation, which will come into force on May 25, 2018.
Businesses will also have more accountability and conditions to comply with, making them more liable under the new regulation, Cripps added.
“The additional risk this creates means businesses are more likely to seek cover which will help drive the market,” she said.
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