Spending by UK businesses on cyber insurance is expected to grow by over 2000% in the next five years, according to Barbican Insurance.
Currently UK businesses spend £20 million a year on cyber insurance, but with the rise in data breaches and hacks, businesses are expected to spend much more to offset the risk of a cyber attack. Barbican believe businesses will be spending upwards of £450 million each year on cyber insurance within the next five years.
The rapid growth in spend has been predicted due to new European Union rules that require businesses to report a data breach or face a potential fine. This is expected to encourage companies to invest in cyber insurance in order to cover the risk of dealing with such attacks, and any resulting claims.
Similar laws were introduced in the US back in 2005, which triggered a huge increase in insurance spend – from $850 million in 2012 to $1.3 billion in 2013 and a predicted £2 billion in 2014.