General Insurance Article - WannaCry attack highlights need for cyber incident database

 The call comes as organisations and businesses across the world recover from the ‘WannaCry’ cyber-attack that has hit over 300,000 computer systems across 150 countries. There is currently very little data on the size and scale of cyber breaches, contrasting with 350 years of fire data and 100 years of motor and aviation data that the industry has.

 Building on the requirement in the General Data Protection Regulations for firms to provide notification of certain cyber incidents from 2018, this data could be anonymised and made accessible to insurers who could then use it to improve pricing and potentially put the UK at the forefront of the global cyber insurance market. More information on the nature of cyber-attacks could help grow the insurance market, so offering more choice for businesses. While several states in the USA require firms to report any cyber breaches to the authorities, national data accessible to insurers would be a world first.

 James Dalton said: “Cyber crime is the biggest threat to Britain’s world leading digital economy. As the latest attack shows, cyber-attacks can bring any organisation to its knees. The insurance industry is stepping up to help businesses to manage cyber risk, including helping any customers hit by the latest cyber attack. Yet without good data about the threat and potential losses, it is hard for insurers to accurately assess cyber risks. More data on this global threat is urgently needed so that we can get on top of this danger and give businesses of all shapes and sizes greater choice of cyber insurance products.”