UK Government to share cyber attacks data with cyber insurance firms

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UK Government has finally bowed to the repeated requests made by Lloyd’s Insurance to share data related to cyber attacks. In early 2016, Lloyd’s Bank put forth a proposal before GHCQ to make the cyber attack data available to companies serving cyber insurance.

In June this year, Lloyd’s again asked the UK government to accept the proposal of creation of a central repository which could share data related to cyber attacks with firms serving Cyber insurance in UK and Europe.

Very recently, the UK government has accepted the proposal of sharing enough information on new digital threats with companies offering cyber insurance.

As cyber insurance is in great demand, especially after the cyber attack on Tesco banks, more insurance companies are coming forward to provide an insurance cover for all data security concerns. It is estimated that every year $2.5 billion worth of premiums will be generated and is expected to grow to $7.5 billion by 2020.

A recent amendment to European Union regulations has made it compulsory for companies to report details of cyber attacks to a central repository in GCHQ. But this rule will come into force after 2018.

In the meantime, if the companies offering cyber insurance miss the data, then they could face high-end problems while providing fair pricing model to businesses seeking cyber coverage.

For this reason, Lloyd’s who occupies 25 percent share of the global cyber insurance market has requested the UK regulatory to grant permission to access data related to cyber attacks.

Also in the past, cyber attack victim companies used to complain that the policies they are being offered do not cover the damage that a hack can cause to the reputation of the company and brand.

But now Lloyd’s has cut down this factor to zero by offering a cover to lost sales that can result from reputational damage caused by a hack.

As per a study made by AIG, Ransomware and Extortion are topping the list of claims on cyber insurance policies in Europe. AIG claims that ransomware has topped 16 percent of claims between 2013 and 2016 in the US.

As per our sources, Lloyd’s will get hold of cyber attack data in the UK from early next year.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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