The City of London must ensure the UK takes a lead in setting standards that underpin cyber insurance products and sharing data to help shape the global cyber market, according to a new report.
The report, from the City of London Corporation in association with Accenture, identifies cyber insurance as one of the next key markets of growth for London, as the city and the UK emerge from the pandemic.
Entitled The Future of Cyber Insurance: Next Steps for the London Market, the report finds that cyber attacks now stand as one of the greatest risks to the world economy and the ‘new normal’ of post-pandemic life as more people use digital technologies.
The National Cyber Security Centre recently published data covering September 2019 to August 2020 showing a 10% increase in cyber incidents, with 194 identified as Covid-related.
The City of London Corporation’s new report finds that business leaders have been faced with rising costs in cyber security. Approximately 69% of business leaders say that staying ahead of attackers is a constant battle and the costs are unsustainable.
London’s cyber security ecosystem and insurance industry can collaborate to meet demand for cyber insurance, according to the report. Key challenges and opportunities include:
- Ensuring the UK takes a lead in setting standards that underpin cyber insurance products and sharing data to help shape the global cyber market;
- Increasing engagement and outreach to emerging cyber insurance markets to articulate the benefits of placing business in London; and
- Supporting the cyber resilience of UK PLC as domestic demand for cyber insurance grows.
Catherine McGuinness, policy chair at the City of London Corporation, said: “London is already a world leader in both the insurance and cyber security sectors, so it is only natural for it to take a leading role in the cyber insurance space.”
“The City of London has an important part to play in supporting the capital’s re-emergence from the pandemic.”
McGuinness called for a group of cross-industry stakeholders to convene in order to promote London as a global cyber insurance hub.
She continued: “Not only does it have the potential of bringing economic benefits to the UK economy, but it will also improve the cyber resilience of UK businesses more broadly—ultimately helping to keep us all more cyber secure.”
Max Richter, a managing director in Accenture’s insurance practice who leads on cyber insurance, said: “No one could have predicted the challenges of this year for the insurance sector.”
“With a rapid shift to home working, businesses accelerating their digital transformations and cyber-attacks becoming more sophisticated than ever—the need for dependable cyber insurance has never been greater.”
“London is fortunate to have some of the world’s leading insurance and cyber security players which makes it a vital cyber insurance hub, not just to protect UK businesses from cyber risks, but the whole world.”