Market Research Report
UK Cyber Insurance 2017
|Published by||GlobalData||Product code||479847|
|Published||Content info||44 Pages
|UK Cyber Insurance 2017|
|Published: March 8, 2017||Content info: 44 Pages||
UK Cyber Insurance market is growing over time. Product penetration is increasing as businesses are becoming more aware of the need for cyber insurance in a world where they are dependent on the digital space and crime is moving online. All businesses are vulnerable and require cyber insurance, regardless of size or industry. While there is a large opportunity for insurance providers to increase product penetration and grow their commercial books, they must be cautious due to the unknown exposure and scale of cyber risk. Cyber Insurance is still developing its place within commercial insurance portfolios.
Businesses should be focusing on improving their cyber security, aiming to prevent breaches to protect customer data. While cyber insurance itself cannot prevent breaches, it has become an important tool in helping organizations recover from attacks and mitigate the impact on business continuity in all aspects of trade and reputation. Providers should promote cyber security, as increasing claims frequency and severity would put pressure on market profitability.
It is estimated that fraud and cyber offenses make up 47.3% of all crime according to the Crime Survey of England and Wales conducted by the Office for National Statistics (ONS). Cyber insurance penetration is increasing. 13.7% of UK SMEs held cyber insurance in 2016, compared to 2.1% in 2014. The average total organizational cost of a data breach is increasing. In the UK it rose by 14.5% from $3.45m to $3.95m from 2014 to 2016 according to the Ponemon Institute.
The report "UK Cyber Insurance 2017" discusses the growing need for cyber insurance and highlights product uptake among UK businesses. It explores how cyber insurance fits within a commercial insurance portfolio and examines the products offered by key market players. It demonstrates how the insurance sector can help improve understanding of cyber insurance, and how insurers and brokers can help promote the adoption of good practice to reduce the frequency and cost of breaches. The report will also discuss the most significant market developments over the past 12 months and how the sector is likely to develop in the future in reference to new initiatives and regulation.
Companies mentioned in this report: AIG, Zurich, Aviva, Hiscox