UK spending on cyber insurance is set to boom over the next five years as businesses try to offset the potentially disastrous effects of data breaches and hacks.
According to statistics, companies spend only £20m a year on cyber security, but that figure is expected to balloon to £450m within five years. The total UK cyber market is worth £3.5bn.
The growth has been put down to the new European Union rules requiring companies to report a data breach or face a fine. It is predicted that this will spur companies to invest in insurance to cover the cost of dealing with attacks and claims.
In the US, laws were introduced in 2005 to force companies to take steps to protect themselves from cyber-attacks, triggering an increase in insurance spend. US companies spent $1.3bn on cyber insurance last year, compared with $850m in 2012. That is expected to grow by a further $1bn this year.
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