28th August 2020

The Government Response to the Cyber Security Incentives and Regulation Call for Evidence has been published. The responses are of interest because they highlight the ongoing barriers to clients taking effective action to manage their cyber risk.

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The experience fed back to BIBA by brokers and BIBA’s Cyber Committee is that many firms may still not have adequate cyber resilience planning in their businesses. Cyber insurance is part of that conversation. It is suggested, where the two work hand in hand, cyber security and cyber insurance, businesses will be better prepared for the almost inevitable cyber attack.

To this end the Government has published its response to the Cyber Security Incentives and Regulation Call for Evidence. BIBA and the Cyber Committee contributed insight and evidence that calls for the promotion and incentivisation of cyber security and cyber insurance as a means to aid firms’ business resilience.

The Call for Evidence proposed three barriers preventing organisations from improving their digital resilience:

  • inability, including not knowing what to do, and not having the right skills and resources;
  • a lack of commercial rationale to take action
  • a complex and insecure digital environment

The Government response shows the majority of respondents (over 70%) agreed with each of these three barriers.

Respondents also highlighted two further barriers:

  1. a lack of incentives to support organisations to take action; and
  2. insufficient regulation to compel organisations to better manage cyber risks.

If any more evidence is required that SME’s are prone to cyber attack, BIBA cyber insurance scheme provider CFC Underwriting has produced these articles which members may want to use with their clients https://www.cfcunderwriting.com/resources/articles/2020/08/5-reasons-hackers-target-smes/

BIBA will continue to engage with the Department for Digital, Culture, Media and Sport, the National Cyber Security Centre and H.M. Treasury to support the uptake of cyber insurance and the role of brokers as trusted advisers.

For more information how to access advice and quotations on BIBA’s Cyber Insurance scheme via CFC Underwriting visit the BIBA website: https://www.biba.org.uk/members/biba-schemes/cyber-liability/

 

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