Insurance claims for data breaches: more than one made every day

19 December 2016

UK businesses believed to have a lower level of security than those in the US


More than 400 insurance claims for data breaches have been made during 2106, according to one underwriting firm.

CFC Underwriting told the BBC that the main types of attack being claimed for were privacy breaches and the theft of cash, with claims on CFC policies up 78% on 2015.

“Around 90% of our claims by volume are from businesses with less than £50m in revenue," said Graeme Newman, the firm’s chief innovation officer, who added that a "disproportionate" number of claims were being made by British firms.

"This is largely down to the fact that on the whole, UK businesses have a lower level of security maturity than their US counterparts.”

Ransomware, in which data is encrypted unless victims pay cash to a hacker to unscramble it, was behind 16% of the claims filed with CFC, putting it third behind data breaches and theft. Mr Newman also pointed out that the major breaches seen in 2016, which have seen huge amounts of login details stolen and shared, was starting to be used much more frequently.

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