Databarracks‘s annual Data Health Check study reveals that over half (57 per cent) of UK organisations that experienced a cyber attack in the past year made a claim on their insurance, with the banking & finance space seeing the highest number of claims of over £1m (67 per cent).
Meanwhile, 41 per cent reported an increased requirement from their insurers over the last 12 months for cyber security tools, with just under a third (29 per cent) citing experience of cyber insurance cost increases.
Demand for cyber insurance also increased from 51 per cent to 57 per cent compared to last year’s report, as attacks continue to challenge security teams.
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“It is harder and more expensive for organisations to get cyber insurance cover,” said James Watts, managing director at Databarracks.
“The cost and conditions of cyber insurance began to rise in 2021 in response to an earlier ongoing cycle of cyber attacks and subsequent massive payouts. While increased cost isn’t something any organisation will be happy about, these changes will lead to an overall improvement in cyber resilience.
“For cyber insurance to remain viable, insurers needed to increase the cost to their customers – and reduce their likelihood of paying out.”
Mitigating data loss risks
To help keep evolving cyber attacks such as ransomware (affecting 37 per cent of respondents) at bay, 84 per cent have carried out security training across their business in the last year.
Also, IT security budgets for alm0st half (49 per cent) were said to have increased in the past 12 months, continuing a six-year trend.
81 per cent of large firms, and 74 per cent of medium-sized businesses have business continuity plans in place, but small businesses (40 per cent) were found to be falling short.
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Watts added: “It is impossible to guarantee that the organisation will not suffer an attack. But, by mandating good security practices, processes and tools, robust measures in insurance policies can contribute to significantly reducing the risk.
“There is often scepticism about cyber insurance. Some organisations think it may make them a target to cyber attackers because it would increase the likelihood of a payout on a ransomware attack.
“We strongly recommend cyber insurance. Not only does it cover costs for those who do face an incident, but the forensic expertise it provides helps get the organisation operational as quickly as possible.”
500 UK-based IT decision makers across several industries were surveyed by backup, recovery and business continuity provider Databarracks for its 16th annual Data Health Check report.
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