Hacks and data breaches are having a good year, or a bad one, depending how you look at it. The FBI’s HR dept suffered a n online break-in recently, Dutch ladies have seen their medical records accessed and in the UK established online retailer ASOS has also seen a systems failure via its app. For insurance brands there is lots of downsides as regards trust, and long term reputational damage.
Many insurers now use apps so that policyholders can manage their cover, and report claims, upload images etc. It’s critical that any insurance app meets the highest standards of security, especially as regards monthly payments, or claims settlement data.
Here’s some analysis by Premierline;
Online fashion giant ASOS has become one of the latest targets in a wave of cyber incidents affecting UK businesses, after hackers hijacked its app to deliver an extortion demand directly to millions of customer phones.
The breach follows broader findings that 82% of medium and large UK businesses reported a cyber incident over the past year, with further research revealing the number of UK cyberattacks has risen by 36% year-on-year.
Premierline, a leading business insurance broker, has reported a rise in demand for cyber insurance, as businesses look to protect themselves against growing digital risks. This is particularly important as October is Cybersecurity Awareness Month.
Rebecca Leversidge from Premierline commented: “ASOS is the latest unfortunate target of a cybersecurity attack – during Cybersecurity Awareness Month.
We are seeing a 130% increase in businesses turning to cyber insurance, reflecting that the cost of being unprotected has become too high to ignore. Businesses of all sizes are now potential targets, and the financial and operational consequences of an attack can be severe.
“Cyber insurance plays a critical role in helping organisations recover from incidents, offering financial protection alongside expert support to manage breaches, restore systems, and minimise downtime.”
How Cyber Insurance Works in a Crisis
In the wake of an attack, modern cyber insurance policies are designed to act as a multi-stage toolkit to aid recovery:
- Incident response: 24/7 support from cyber specialists to manage and recover from attacks.
- The repair – Covering the costs to restore corrupted systems and replace lost data.
- Legal protection: Providing legal defence against third-party claims brought by affected customers or partners.
- Financial support: Compensation for lost revenue during IT downtime while the business works to get up and running again.
Cyber Insurance: A Strategic Investment
Rebecca continued, “The cost of cyber insurance will vary depending on your business, but the cost of not having protection can be far greater. Beyond immediate financial loss, cyber incidents can damage customer trust, disrupt operations, and create long-term reputational harm.
“In today’s environment, cyber insurance is not just about protection, it’s about resilience. It ensures businesses have the support, expertise and financial backing needed to respond effectively when an incident occurs.”
With cyber threats continuing to rise alongside global instability, Premierline is urging businesses to review their cyber risk exposure and ensure they have appropriate protection in place.
Browse our insurance products today to find one that suits the needs of your business.
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