Organisations are becoming increasingly reliant on their computer systems in order to conduct their business, and it is now more common to store all key information on their computer system. As technology becomes increasingly important, this brings with it an increased risk.
Hacking can now be done by anybody with access to the internet, increasing the risk to a business of becoming a victim of a cyber-attack.
Do I need Cyber Insurance?
Aside from the growing risk to businesses of experiencing a cyber attack, and the increased reliability on an organisations computer systems to conduct business, there are a number of reasons as to why cyber insurance is needed.
The introduction of compulsory reporting of cyber breaches will mean that potential claimants will have greater awareness that a breach has occurred, increasing the likelihood of a claim.
The courts have also changed the way that they award compensation. Historically it was very difficult to acquire compensation for a claim where no actual financial loss has been suffered. However, the UK courts are becoming increasingly willing to award nominal damages to people whose data has been stolen or lost. Furthermore, if this material relates to a large number of individuals, then group action is a significant threat.
It is also a common misconception that cyber criminals will only look to target larger organisations. A business of any size can become the victim of cyber crime, and often smaller businesses are seen as an easier target due to lower investment in cyber security.
What should I do if I have questions?
Give our team a call on 01270 758056 to discuss the ins and outs of cyber insurance for Actuaries and what this could mean for your business.
