High profile cybercrime attacks force up insurance premium

A number of recent high profile cyber attacks on companies like AshleyMadison and TalkTalk have driven up cybercrime insurance premiums, according to Marsh.

A number of recent high profile cyber attacks on companies like AshleyMadison and TalkTalk have driven up cybercrime insurance premiums, according to Marsh.

The insurance broker said that insurers have become more wary of some industries. For instance, policy renewals is healthcare have risen up to three times. Insurers are also demanding more from their customers, including formal incident response plans for protecting data and ensuring encryption technology is up to scratch.High profile cybercrime attacks force up insurance premium

The report revealed that policy take-up is on the rise, despite premiums being on the rise. Marsh cited various reasons for the increased take-up, including reputation protection from company boards and loss of business following an attack.

The hospitality and gaming industries saw the biggest rise in policy take-up, from 16% of businesses in 2013 to almost a quarter (24%) last year.

Education also saw a significant uptake, from 22% in 2013 to just under a third (32%) last year. Healthcare remained the most insured sector, with half of all organisations having taken out some form of cybercrime protection.

Dr Robert Hartwig, president of the US Insurance Information Institute, said: “A proliferation of high profile cyber attacks and data breaches ensures that businesses, governments, law enforcement, cyber security experts and consumers around the world are paying close attention to the risk of cyberspace and developing a corresponding response.”