UK government looks hard at cyber risk

A report entitled “UK Cyber Security: The Role of Insurance in Managing and Mitigating the Risk” published by Marsh, was created with the following aims: to help firms “get to grips with cyber risks,” to establish cyber insurance as part of firms’ “cyber tool-kits” and to make London the global centre of cyber risk management. 

Under the initiative, the government launched Cyber Essentials, a scheme to guide businesses in protecting themselves against cyber risks. A key agreement mentioned in the report was that participating insurers would include the Cyber Essentialscertification as part of their risk assessment for SMEs.

To help the insurance industry to establish cyber insurance as part of firms’ tool-kits, the report highlighted the need to increase business awareness. It said Lloyd’s, the Association of British Insurers, and the government had agreed to develop a guide on cyber insurance and to host it on their websites. Marsh also recommended that companies stop viewing cyber largely as an IT issue and focus on it as a “key commercial risk affecting all parts of its operations.”

The report said outside the US, cyber insurance had not been seen as an export opportunity. To make London a global centre for cyber risk management, Lloyd’s and UK Trade & Investment agreed to co-operate to promote the cyber capabilities of the London insurance market.