Insure yourself against cyber attack

Penny BlackMicrosoft and the rest of the IT vendors never said that technology was safe.

They didn’t say that because they always knew it wasn’t but still wanted to sell stuff.

And it’s an ill wind that brings no one any good, because according to market research company ABI Research, insurance companies are set to collect a $10 billion cyber bonanza by the year 2020.

Michela Menting, a research director at ABI, said that continued and sustained cyber attacks “are having a ruinous effect on enterprises”. She said that over 900 million records were abstracted last year and that’s leading big companies to insure themselves.

But, she added, less than 20 percent of big enterprises use cyber insurance and for small to medium sized enterprises (SMEs), only six percent bother.

She said that companies will move to cyber insurance at a compound annual growth rate of 36.6 percent between now and 2020.

She said: “The largest barrier to growth is lack of actuarial data about cyber attacks, but this is quickly changing.” She continued that insurers find it difficult to give data or systems a proper value.

“They are unable to scope the cyber risk environment of an organisation.”