Demand for cyber insurance policies increases by 50%

Demand for cyber insurance policies rose by 50% in the first quarter of 2015, according to Lloyd’s syndicate Barbican.

The underwriters claimed that 70% of its customers were first time purchasers. It added, however, that sectors that have been affected by attacks, particularly retail, were also looking to buy higher limits.

Inga Beale, chief executive of Lloyd's, said: “Cyber risk poses the most serious threat to businesses and national economies, and it’s an issue that’s not going to go away.

“The London market has a long, proud history of finding innovative solutions to insuring large, complex risks that are challenging to underwrite locally.”

The availability of cyber insurance policies have received a considerable amount of media coverage in recent months, thanks in large to a number of high profile cyber attacks on organisations such as Sony.

The government has also been making efforts to promote the concept to UK businesses and push UK insurers to take the lead in this area of insurance.

A report previously published in March by the government and insurance broker Marsh claimed that just 2% of large businesses in the UK have ‘explicit cyber cover’, with the study also finding that half of respondents were not aware that cyber insurance policies existed.