Only one-third of insurers in the London market believe companies could withstand a major cyber attack, with approximately half feeling unprepared, according to a survey conducted by Xchanging.
The UK government revealed in September that 74 percent of small businesses and 90 percent of major businesses had a cyber breach of security in the previous year.
The survey, which was conducted at the Xchanging London Market Conference 2015, revealed that 36 percent of respondents said they definitely have sufficient measures in place to withstand a major cyber attack, 30 percent felt they were only partially protected, 16 percent said they are insufficiently protected, and 18 percent were unsure.
Adrian Guttridge, executive director of Xchanging Global Insurance Services, said: “The insurance industry is grappling with the extensive threat of cyber-attacks from an underwriting and risk management perspective and, in the absence of enough meaningful data, modelling the risks involved remains a grave challenge.
“As custodians of vast amounts of data, insurers are also aware that they, too, are vulnerable to cyber breaches—and the reputational damage that this can cause.”
He added: “The recent cyber-attack on TalkTalk is the latest in a lengthy list of high-profile hacks of personal data held by government and commercial organisations.”
“Insurance companies must take very seriously the extent of the risks they face and ensure their cyber security measures are constantly reviewed and updated. They should also be mindful that, in some areas, a collaborative, industry approach in which knowledge and skills are shared among peers, may be the most effective way to strengthen cyber defences.”
