Data breaches are proliferating, and the associated costs are exploding. According to the Ponemon Institutes’s “2014 Cost of Data Breach Study: United Kingdom” study, the average cost of a data breach has reached in the UK increased from £2.04 to £2.21 million.
Businesses’ general liability policies don’t cover those costly data breaches, which points to cyber insurance being a wise choice. In fact, AON PLC, the world’s largest reinsurance broker, claimed in October 2014 that the cyber insurance market was at the time growing at 38% annually.
However, as a case in the US a bit earlier this year has shown, cyber insurance should not be relied upon as your first line of cyber defence. […]