Government-led UK summit backs cyber market to drive risk prevention

The summit, held in conjunction with broker Marsh, discussed how the insurance sector can help ensure that the UK is one of safest places to do business in cyberspace. The meeting was the first of its kind and marks closer collaboration between government and industry. A joint statement by the 12 insurance CEOs and various government bodies released after the summit said that the insurance sector is in a strong position to drive improvements in cyber security risk management.hideThe insurance sector recognises the role it can play in improving good practice by asking the right questions of customers in relation to their cyber breach and operational risk policies, it said. "Insurers providing cyber breach and wider operational risk cover can play an integral role in driving improvements in cyber security risk management. By asking the right questions and helping customers, insurers and insurance brokers can help promote the adoption of good practice, including Cyber Essentials, that reduce the frequency and cost of breaches. Not only can cyber insurance help businesses to meet the costs of a security breach event, but it can also provide front end risk analysis to gauge the organisation's exposure to cyber risk, and deliver rapid incident response services that are critical to minimising the impact of a breach," the statement read. It pointed out that cyber insurance does not remove the need for businesses to manage their risk from cyber attacks. Rather insurance should be seen as part of a 'holistic approach to cyber risk management including business controls, investment in security and education of staff and customers', the statement added. The joint statement also announced the establishment of working groups to focus on key issues and report emerging conclusions back to the Cabinet Office in April 2015. John Hurrell, CEO of Airmic, said the initiative correctly recognises the need for a coordinated effort to improve the management of cyber risk in business. "Airmic very much welcomes closer engagement between the government and the insurance industry, and believes the insurance industry has a critical role to play in improving awareness and informing the debate. We hope that this will in turn foster closer working relationships between other key players, including between IT and risk functions within organisations," he said. Mr Maude said his government wants to support the growth of a cyber insurance market in the UK. "We are very pleased to come together with the UK's world-renowned insurance sector. Cyber insurance does not replace the need for good cyber security practice but is an added protection for businesses in the event of breaches," he added. This latest initiative builds on the UK government's ongoing partnership with industry under the National Cyber Security Programme to ensure that businesses have better cyber security protections in place. Guidance such as the Ten Steps to Cyber Security for businesses and the Cyber Essentials scheme provide clear practical advice on what cyber security controls organisations should have in place. Mark Weil, CEO of Marsh UK & Ireland, commented: "As recent network attacks and data breaches have demonstrated, cyber security events can quickly accumulate significant costs, inflict reputational damage, and undermine investor confidence. A massive data breach will invite litigation, generate regulatory fines and instigate law enforcement investigations. Cyber attacks can even cause physical damage by manipulating control processes. Companies should be assessing their vulnerability to cyber attack and taking advantage of risk management and insurance solutions to mitigate the potential for these events to harm their business."

Government-led UK summit backs cyber market to drive risk prevention

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