Lloyds of London has reported a surge in the number of companies seeking cyber insurance in 2015, as they look to safeguard themselves against cyber security breaches.
Richard Pharro, CEO of APM Group
“It’s important to remember that insurance is no cure-all and remedies under a contract may form part of, but should not be considered to be an entire risk mitigation strategy. While cyber insurance may offer the opportunity for those hit by cyber attacks the opportunity to recoup some of their monetary losses, little can be done to repair the reputational damage brought by a data breach, the negative impact on trust and lost Intellectual Property.
“Despite an increasing awareness of cyber and data security issues across British firms, what we are seeing is that this awareness isn’t necessarily being coupled with practical or educational expertise on the subject. Some firms have taken strides towards cyber security but often fail to cover all aspects of the threat. Greater awareness and interest by the Insurance industry should encourage more companies to include cyber security as a key risk and, hopefully, extend this awareness to supply-chain resilience, third party providers, and their own employees.
“The old adage that prevention is better than a cure may be a simplistic way to encapsulate the issue, but it does provide a lens for a firm to consider their Cyber risks. Undoubtedly, security begins with self-education, and by qualifying your company’s current capabilities and resilience to protect against cyber-risks. The first port of call for any cyber-aware firm needs to be a strict and dynamic cyber security strategy and this strategy should be underpinned by appropriate insurance.”
About APM Group
APM Group offers certifications including the CESG Certified Professional (CCP) and Certified Training (CCT) schemes, CDCAT – the Cyber Defence Capability Assessment Tool and a certifications; ISO/IEC 20000, ISO/IEC 27001, COBIT5, IAITAM and OBASHI. Visit www.apmgroupltd.com.