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More businesses seek cyber protection

The number of companies buying standalone cyber insurance has jumped 29% compared with last year, according to a Risk and Insurance Management Society (RIMS) survey.

Standalone covers are the most popular, with 80% of respondents taking up these policies, rising from 51% last year.

Almost 70% report some form of cyber-exposure risk transfer to a third party, up 10%, RIMS’ annual cyber survey of 272 members shows.

Nearly a quarter of respondents pay more than $US500,000 ($664,398) in annual premiums.

This year’s survey results indicate growing corporate awareness of the importance of cyber protection.

“Failure to keep pace with technological advancements will leave an organisation at a terrible disadvantage,” RIMS President Julie Pemberton said.

“Embracing technology has enabled organisations to strengthen their performance, but, at the same time, has created many new exposures that risk management must address.”

About 81% have a response plan for cyber crises, 67% plan to buy cover in the next 1-2 years and 24% will spend more than $US1 million ($1.33 million) on cyber security this year.

The respondents represent a range of industries including manufacturing, financial services, healthcare, education, telecommunications and energy.

US-based RIMS is a non-profit body with about 11,000 members from more than 60 countries.