The number of UK companies insured against cyber risks has declined even though cybercrimes have become among the biggest threats to businesses, according to a new PwC survey.
The accounting giant interviewed 479 British company executives and just over a third, or 38%, say they have a cyber insurance policy, down from 59% last year.
According to PwC, companies are hesitant to obtain policies because the products currently available in the market are deemed insufficient.
“The drop in take-up of cyber insurance shows that this is still maturing as a product,” said Domenico del Re, insurance director at PwC.
“Companies do not see the cover currently on offer as targeted to their individual risks and therefore not value for money,” del Re noted.
Insurers with existing cyber insurance products tend to limit the amount of cover offered under each policy, PwC added.
The limited protection currently available to corporates, PwC said, also does not come close to the potential losses seen from a truly damaging cyber-attack.
PwC also interviewed 14 London Market specialist insurance companies and found that half of them are already selling cyber policies or considering it as an area of growth.
The other half do not actively pursue cyber and believe that the risk is borderline insurable, PwC said.
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