Most UK firms in survey by FICO and Ovum say insurance industry should improve explanations of cybersecurity insurance pricing
LONDON, May 31, 2017 /PRNewswire/ --
31 percent of UK executives surveyed say their firm has no cybersecurity insurance, compared to 40 percent in other countries surveyed
Only 28 percent of UK firms surveyed have cybersecurity insurance that covers all risks
69 percent of respondents say insurers should do more to explain how they price risk
Ovum conducted telephone surveys for FICO of security executives at 350 companies in the UK and other countries
UK firms are increasingly protecting themselves with cybersecurity risk insurance, but nearly a third of firms have not taken out insurance yet. A new survey conducted by research and consultancy firm Ovum for Silicon Valley analytics firm FICO reveals that even among those that have insurance, only 28 percent said they have cybersecurity insurance that covers all risks.
FICO will host a Tweet Chat on the cybersecurity survey with Ovum tomorrow at 16:00 BST. Individuals are encouraged to participate using #cybertrends.
Even though the majority of firms surveyed have cybersecurity insurance, most say that the risk assessment process insurers use needs improvement. Just 31 percent of respondents think their premiums reflect an accurate assessment of their risk. Nearly as many, 29 percent, said they don't believe the assessment accurately reflects their risk, and 11 percent said they don't know how their insurance is priced.
"The UK will soon be subject to General Data Protection Regulation (GDPR), which introduces higher fines in cases of data breach," said Steve Hadaway, FICO general manager for Europe, the Middle East and Africa. "Even if attacks don't increase in volume, firms could end up paying more, which makes having comprehensive insurance more important. At the same time, companies have a right to expect that they will pay less if their protection is better. The onus is on the cybersecurity insurance industry to make sure insurance rates are fairly set for each individual firm, based on a sound analysis of its risk."
Ovum conducted the survey for FICO through telephone interviews with 350 CXOs and senior security officers based in the US, Canada, the UK and the Nordics in March and April 2017. Respondents represented firms in financial services, telecommunications, retail, ecommerce and media service providers.
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 170 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
Ovum is a market-leading research and consulting firm focused on helping digital service providers and their vendor partners thrive in the connected digital economy. Through its 150 analysts worldwide, it offers expert analysis and strategic insight across the IT, telecoms, and media industries. Founded in 1985, Ovum has one of the most experienced analyst teams in the industry and is a respected source of guidance for technology business leaders, CIOs, vendors, service providers, and regulators looking for comprehensive, accurate, and insightful market data, research, and consulting. With 23 offices across six continents, Ovum offers a truly global perspective on technology and media markets and provides thousands of clients with insight including workflow tools, forecasts, surveys, market assessments, technology audits, and opinion.
Ovum is part of the Business Intelligence Division of Informa plc, a leading business intelligence, academic publishing, knowledge and events group listed on the London Stock Exchange. https://ovum.informa.com/