Recent cyber-attacks like the recent ‘WannaCry’ ransomware virus attack have defied predictions that they would act as a wake-up call for businesses concerned about their cyber security, according to communications consultancy group FWD.
FWD carried out a survey of 250 UK insurance broking firms that showed that following the attack there has been surprisingly little increase at all in the number of enquiries for cyber insurance cover.
FWD said that 73 percent of brokers surveyed said that there had been no change at all in the number of enquiries for cyber cover following the Wannacry attack. Only 4 percent of brokers said that they had seen a significant increase.
“The uptake of cyber insurance in the UK has been relatively slow to date," said Carole Herpin, senior account director, FWD Research. "Many people think that cyber would have the same impact as CAT or windstorm cover. That is, after a large incident, when people are reminded very clearly how important such cover can be, there is a major uptick in enquiries and purchasing among businesses."
Ransomware worm ‘WannaCry’ hit 150 countries and caused damage across the globe over the weekend of May 13-15, 2017, affecting the UK's health service NHS, Spanish telecommunications firm Telefonica and FedEx among others, stopping car factories, hospitals, shops and schools.
“Attacks of this type are becoming increasingly prevalent,” stated Elliot Lane, joint managing director, FWD. “Since WannaCry, there has been further cyberattacks, on Whitehall and the more virulent Petya ransomware attack. The question is what incident will be the catalyst to kick-start the market? Firms might be holding back on cyber insurance if they do not think that the right type of products are available, however if businesses are not prepared, then they could be facing significant losses. At this stage, it appears that this is a risk many businesses are willing to take.”
Cyber Crime, Insurance, Ransomware, FWD, Europe, North America, Elliot Lane, Carole Herpin