WannaCry fails to stimulate cyber insurance demand: Survey

The recent ‘WannaCry’ ransomware virus attack was heralded as a wake-up call for businesses concerned about their cyber security but has failed to boost demand for insurance, according to communications consultancy group FWD.

A recent survey of 250 UK insurance broking firms shows that following the attack there has been surprisingly little increase at all in the number of enquiries for cyber insurance cover.

According to the survey, 73 percent of brokers surveyed said that there had been no change at all in the number of enquiries for cyber cover following the Wannacry attack. Only 4 percent of brokers said that they had seen a significant increase.

“The uptake of cyber insurance in the UK has been relatively slow to date," said Carole Herpin, senior account director, FWD Research. "Many people think that cyber would have the same impact as CAT or windstorm cover. That is, after a large incident, when people are reminded very clearly how important such cover can be, there is a major uptick in enquiries and purchasing among businesses."

Ransomware worm ‘ WannaCry’ hit 150 countries and caused damage across the globe over the weekend of May 13-15, 2017, affecting the UK's health service NHS, Spanish telecommunications firm Telefonica and FedEx among others, stopping car factories, hospitals, shops and schools.

Elliot Lane, joint managing director, FWD added: “Attacks of this type are becoming increasingly prevalent. Since WannaCry, there has been further cyberattacks, on Whitehall and the more virulent Petya ransomware attack. The question is what incident will be the catalyst to kick-start the market? Firms might be holding back on cyber insurance if they do not think that the right type of products are available, however if businesses are not prepared, then they could be facing significant losses. At this stage, it appears that this is a risk many businesses are willing to take.”

FWD’s ‘Broking Now’ survey is a bi-monthly survey of UK insurance brokers and was conducted between 25 May and 21 June 2017, compiling responses from 250 regional, national and global broking firms based in the UK.

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