Inga Beale, the chief executive of the Lloyd’s insurance market, has urged the UK Government to share data about cyber-attacks as the industry finds it difficult to obtain sufficient information about new digital threats. The lack of available data about past attacks is a problem for insurers who want to provide cyber coverage. Cyber insurance is an increasingly prevalent facet of the industry due to the high-profile attacks that have fuelled demand from companies to cover. The market generates premiums worth about $2.5 billion per year and is expected to grow to $7.5 billion by 2020. Reporting cyber-attacks to the authorities will become compulsory in 2018, thanks to EU regulations that are due to come into force. Furthermore, companies suffering data breaches could face fines of up to €20 million under these new rules.
Insurance experts expect the new rules to increase demand for cyber insurance as companies seek to cover the reporting costs and remedial work associated with cyber-attacks. Additionally, Ms Beale believes that these rules could provide opportunities to help with pricing, “We’d love to have the data to build up a fair pricing model”. She further told the Financial Times, “We’d very much like to be able to work with the government in 2018 and beyond to get a flavour of the types of breaches and the cost of them.” She also stated that Lloyd’s, which has a 25 per cent share of the global cyber market, now offers coverage for the costs of reporting attacks, liability for third party costs, regulatory costs and business interruption coverage.