Cybercrime has become more common than any other form of crime, according to Graeme Newman, chief innovation officer at underwriters CFC.
He said that the financial attraction of cybercrime, which Newman claims is the most lucrative form of crime in the world, is leaving many businesses open to the risk of cyber attacks.
Speaking at the Insurance Times Cyber Insights 2015 conference, he said: “We are living in the technological revolution. It has been incredibly exciting and it has happened so fast that we have barely seen it happen.
“But that means that we haven’t seen the crime element evolving. Criminals look very different these days. These crimes are getting smarter and small businesses are getting caught out.”
Newman added that small businesses are less aware of how fast cyber risk is developing, and insurance systems need to be better at addressing the issue.
His comments echo those of Matthew Hogg, underwriting manager at Liberty, who said many cyber policies on offer are a ‘hodgepodge’ of different covers.
“Cyber really means different things to different people. There are so many risks, including reputational risk and business interruption, it can be a mess,” said Hogg at the conference.
“At the moment, a lot of the policies are a hodgepodge of many risks and they need to be refined.”