British companies scramble for cyber-risk mitigation, insurance
Small and midsize companies remain especially vulnerable to state-sponsored cyberattacks, GlobalData says.
Several recent high-profile cyberattacks in the U.K. have heightened awareness around cybersecurity and the benefits of cyber insurance, says GlobalData, an international business consultancy.
Corporations are especially concerned about state-sponsored cyberattacks, and for good reason. Microsoft has reported that the percentage of cyberattacks perpetuated by nation states jumped as much as 40% between July 2021 and June 2022, due largely to the Russian-Ukraine war. This comes on the heels of a previous Microsoft report that indicated more than 13,000 nation-state cyberattacks occurred between 2019 and 2020.
In the U.K., British Airways, Boots, the BBC and Manchester University have all experienced recent breaches, however only about one in 10 British companies carried cyber coverage in 2022, GlobalData reports. Now the percentage of British firms purchasing the protection is likely to swell despite an uptick in premiums.
“Cyber insurance is already an expensive product,” GlobalData Senior Insurance Analyst Ben Carey-Evans said in a press release. “With the level of risk increasing year on year, and with the ongoing cost-of-living crisis, there is little room for insurers to keep sharply increasing premiums for businesses.”
GlobalData surveyed British companies to find out what spurred them to purchase cyber insurance in 2022. The following rationale surfaced in the firm’s reporting:
Question: What was the trigger for purchasing cyber insurance in 2022/?
- 27% — Increase in remote staff
- 26% — Media coverage of cyber attacks
- 20% — Broker’s suggestion
- 19% — Financial advisor’s advice
- 18% — Competitor experienced a breach
- 16% — Clients encouraged the purchase
- 12% — Victimized by a previous cyber attack
- 11% — Individual victimized by cyber attack
- 9% — Concerns over the war in Ukraine
GlobalData reports that small and midsized companies are the most vulnerable to cyberattacks but also unlikely to have appropriate cyber insurance.
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