With the cyber market set for rapid growth over the coming years, the UK is currently in “an ideal position” to provide this kind of re/insurance, according to John Glen MP, Economic Secretary to the Treasury and City Minister.
Glen spoke at a round table hosted by Andrew Horton, Chair of the London Market Group (LMG), earlier this week on the topic of promoting London’s fast-growing cyber re/insurance market.
“The global cyber insurance market is expected to double by 2020 and as a world-class centre for financial services, the UK is in an ideal position to provide that insurance,” the Minister told the panel of ten UK cyber re/insurance experts.
The round table also discussed future trends that are likely to affect both the supply and demand for cyber re/insurance products in the UK market.
“We’re doing everything we can to protect our economy from the growing threat of cyberattacks,” Glen explained. “However, as every business knows, there is no such thing as 100% security, which is why cyber insurance has become increasingly important.”
Horton, who is also Chief Executive of Beazley, added: “Cyber insurance is a key area of growth in London, with premium growing by 74% between 2013 and 2015. Pressure is however still growing on businesses to look even more closely at the risks they face from the increased number and variety of attacks. In addition, they also must be conscious of the introduction of new data protection laws which impose more transparency of reporting and higher penalties for failure.
“We were delighted to be able to share our international experiences, especially from the US which is the world’s largest cyber-insurance market, with the Minister and we look forward to working with the Government as the market develops further.”
