New BIBA research 1 reveals 40% of respondents said clients that previously held cyber cover are no longer insuring their cyber risks due to the cost of living crisis. The call follows a BIBA Manifesto commitment to actively promote the new joint cyber insurance guide to encourage take up.
Graeme Trudgill, BIBA Executive Director, said: “It is concerning that businesses are cutting cyber cover when the risk is growing so we want them to understand the protection and wider everyday support that is available with leading cyber insurance. Cyber insurance is not just about making a claim. CFC were the trailblazers in developing an in-house cyber threat monitoring and alerts capability for policyholders alongside its own inhouse 24/7 cyber incident response team. To date CFC’s monitoring has prevented over 12,000 incidents from occurring and saved £millions in potential losses.”
BIBA’s Manifesto highlights that SMEs account for 96% of all cyber-attacks as they are often soft targets for criminals to extort money or are the back door, as suppliers, into to larger businesses. Raising awareness among brokers about the value of the CFC scheme to protect both their own businesses and their customers will certainly help combat this risk.
CFC’s cyber development leader, Lindsey Nelson, added: “Many UK businesses are conscious in today's environment that cyber is their number one exposure; yet take-up under budgetary constraints remains low. We have recognised in light of this that it's not enough to simply offer great cover and have introduced cyber insurance protection and support that delivers to policyholders from day one. We continue to be committed to innovation in the cyber market which has contributed to sealing our scheme provider status with BIBA.”
Outlining some of the cyber innovations that will benefit policyholders, Trudgill said: “BIBA has always looked to support new innovations and since I launched this scheme in 2004 with CFC they have developed two decades of experience in building cyber insurance solutions and handling cyber claims. This has made them one of the most established and experienced providers in the market. They are also forward looking and were the first to launch an app enabling policyholders to immediately notify an incident and access a wide range of cyber risk management tools and advice. They uniquely offer a publicly facing ‘Ransomware Calculator’ enabling SMEs – whether policyholders or not – to assess their specific risk.”
Nelson concluded: “Cyber insurance has never been more relevant and cyber is a key risk to consider including in customer discussions about their insurance. You don’t need to have a claim to get value from the policy.”
The new guide to help insurance intermediaries and small businesses understand the prevailing cyber risks and the protection and support given by cyber insurance is available from BIBA’s website and in print by request.
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