Our Survey Said: 49% of IT Dept Managers Oppose Cyber Insurance

Remember the old days when IT departments had their own Star Trek type sliding doors to stop random members of the company from entering the room? You had to phone an IT helpline or raise a ticket, god forbid you should actually speak to someone in IT to resolve a problem. Well, thankfully times have changed as software systems have advanced and more inclusive HR policies apply, but there is still some cultural opposition to cyber insurance from in-house experts. Here’s the word;

A recent poll of UK brokers conducted by CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, revealed that IT departments are the number one obstacle to overcome when it comes to selling cyber policies. Almost half (49%) said that they had encountered a challenge from their client’s IT lead or department, stating that they didn’t need cyber insurance.

If your company does need cyber liability insurance find out more here.

“There’s a long-held misperception amongst IT professionals that cyber insurers are pitching insurance as a replacement for security controls, when in fact the reality is vastly different,” says Philippa Berry, Cyber Product Leader at CFC. “Despite best efforts, cyber attacks can still happen. Just as putting locks on your doors doesn’t negate the need for property insurance, strong IT security measures don’t negate the value of cyber insurance. A good cyber policy will not only transfer the financial risk associated with a cyber event, which can be substantial, but also offers an additional layer of proactive services to help prevent an attack from happening in the first place.”

COMPREHENSIVE RESPONSE

CFC’s cyber insurance solution combines award winning cyber cover, unrivalled incident response and proactive cyber protection which identifies cyber threats targeting policyholders and alerts them through CFC’s Response App .

In addition to these proactive cyber security services, CFC’s comprehensive cyber solution provides cover for a range of costs associated with a cyber event such as:

·       cyber incident response costs including IT forensics, legal, breach notification and crisis communications

·       system damage and business interruption including loss of income

·       full data re-creation including employing contract staff or employee overtime

·       network security and privacy liability including management liability arising from a cyber event and regulatory fines and penalties

And by providing unlimited reinstatement for first party coverages, CFC policyholders aren’t restricted by a policy aggregate and the full benefits of cover are available each time a crisis strikes, even if they experience multiple cyber incidents in the same policy period.

Brokers also cited cost as a major hurdle to overcome, saying that clients felt cyber insurance was too expensive.

“Price is always an issue, but the cost of a cyber claim is so much greater,’ explains Berry. “Ultimately cybercrime is costing UK businesses of all sizes, but in particular smaller organizations, billions of pounds each year. Rather than being mutually exclusive, IT departments and proactive cyber insurers like CFC can work hand-in-hand to afford businesses the best possible protection against cybercrime at a price that reflects the necessary level of protection and support.”

Read more about CFC’s proactive approach to cyber insurance here.