Firms not facing up to cyber insurance threat

Most European businesses’ cyber risk prevention tactics lag behind the threat of an attack, according to Marsh research.

Of the respondents to Marsh’s 2013 cyber risk survey, 71% said their worries about cyber risk had increased over the past 12 months, while 54% said their organisation had experienced a cyber attack.

But 22% of those surveyed said their organisation had not carried out any kind of cyber risk financial assessment, and 23% said that managing cyber risk was not enough of a priority for their company.

Marsh EMEA cyber risk leader Stephen Wares said: “The spectre of a cyber attack evidently looms large among the risks that risk managers believe could threaten the continued success of their organisations. Despite this, it would seem that in the majority of firms, cyber risk is still largely misunderstood and many struggle to implement a clear strategy to tackle it effectively.”

Only 12% of firms surveyed bought cyber insurance, Marsh said, despite 76% knowing that the product existed.

Wares added: “The fact that so few respondents buy cyber insurance, despite high product awareness, is a clear indication that the insurance industry has more work to do in educating clients and developing cover that will adequately respond to their needs.”