Ransomware attacks fail to boost cyber insurance cover

The recent ‘WannaCry’ ransomware virus attack was heralded as the wake-up call for businesses concerned about their cyber security, but UK insurance broking firms have seen virtually no increase in enquiries about taking out new insurance policies.
A study carried out by research and communications consultancy FWD, shows that 73% of brokers said that there had been no change at all in the number of enquiries for cyber cover following the WannaCry attack. Only 4% of brokers said that they had seen a significant increase.
FWD Research senior account director Carole Herpin said: “The uptake of cyber insurance in the UK has been relatively slow to date. Many people think that cyber would have the same impact as catastrophe or windstorm cover.
“That is, after a large incident, when people are reminded very clearly how important such cover can be, there is a major uptick in enquiries and purchasing among businesses.”
The WannaCry attack hit businesses and institutions on a global scale, including the NHS, Telephonica and FedEx. Just last week, a new offensive took down WPP, Mondelez International, Maersk and number of Ukrainian firms.
FWD joint managing director Elliot Lane added: “Attacks of this type are becoming increasingly prevalent. The question is what incident will be the catalyst to kick-start the market?
“Firms might be holding back on cyber insurance if they do not think that the right type of products are available, however, if businesses are not prepared, then they could be facing significant losses. At this stage, it appears that this is a risk many businesses are willing to take.”

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