UK insurers are facing an unprecedented number of cyber security threats, with the increased risk having an across-the-board impact on premium prices. That is according to a new report by secure cloud computing specialists, iomart, in partnership with Oxford Economics, a leader in global economic forecasting and econometric analysis.
The report – ‘The state of cyber security in the UK insurance industry’ – surveyed 500 UK-based cyber security strategy decision makers. Extrapolating responses that came specifically from the insurance industry showed insurers are at significantly higher risk than the average UK business with almost half (49%) reporting between 40 and 60 cyber security incidents in the last 12 months. This is compared to a UK average of 24. Indeed, the insurance sector reported one of the highest numbers in this respect, outstripped only by the finance industry.
Of all the threats regularly cited it was malware that provided the most concern to insurers with 67% of respondents highlighting it the greatest concern to their organisation. The vast majority of insurance companies polled (90%) noted an increase in the premium prices for cyber insurance in the last two years. This outstrips the overall average of 72%. What’s more, the landscape doesn’t look likely to simplify in the near future. The pace of technological change continues to increase, and issues are exacerbated by the rise in flexible working continuing post-pandemic.
REMOTE WORKING EXPOSES THE WEAKEST LINKS
Some 62% of participants said the increased prevalence of remote working was moderately or significantly challenging. The advancing pace of technology (54%) also featured, as effects from the pandemic have complicated organisations’ ability to protect themselves from cyber threats.
Speaking about ‘The state of cyber security in the UK insurance industry’ report, iomart CEO Reece Donovan said: “The changes we have all experienced in the last three years have left a lasting mark on the business landscape. There are few places we are seeing that more acutely than in cyber security.
“The ‘State of Cyber Security in the UK insurance industry’ report shows an ongoing increase in the number of breaches being suffered by organisations. And the results indicate that whilst there’s no one single reason for this, the insurance sector is suffering more than most. However, the data in the report clearly highlights the post-pandemic changes to the way we do business as contributing factors. The barrier to entry for cyber criminals is also much lower than it ever was. Someone can set up a devastatingly effective ransomware or malware business from their bedroom, for as little as £50. This means that all organisations, irrespective of their size, are now potential targets.
“The report also shows a higher-than-expected number of breaches. It indicates that insurers are facing a greater volume of threats than ever before and are more at risk than almost any other industry. These threats are far more complex and difficult to defend against than we’ve ever seen before. This is largely due to threat actors look to exploit vulnerabilities that have emerged as a result of new trends such as flexible working.
“From these figures it is clear that the insurance sector has become a key target for threat actors. The combination of its regulatory obligations, and its central role in business and society, have no doubt highlighted the industry as a valuable opportunity for criminals.”
You can see more Oxford Economics reports at their site.
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