A series of Freedom of Information requests made by Apricorn to local councils and government departments across the UK point to a low take-up of cyber insurance.
The data reveals that just two of the 41 local councils questioned have a cyber insurance policy in place: Flintshire County Council, which adopted its policy in October 2022 and London Councils, whose policy covers the period 2021 to 2024. Two others, Ards and North Down Borough Council and Greater Manchester Combined Authority, said they had plans to invest in such policies within the next year.
A significant number of government bodies either declined to answer, confirmed that they have no cyber insurance, or indicated that they do not intend to invest in cyber insurance in the near future. Suffolk County Council, which disclosed 334 breaches in the same request, noted that they manage cyber risks in-house.
Commenting on the findings, Jon Fielding, managing director EMEA at Apricorn, said:
“Local councils and government departments are responsible for large amounts of sensitive data and should lead by example by adopting stronger cyber insurance policies and more robust data protection measures."
The apparent lack of government uptake contrasts with the private sector's recognition of the growing need for insurance. According to separate findings from Apricorn’s annual 2024 research, 78% of IT security decision makers surveyed confirmed that they do have cyber insurance in place.
Speaking at a British Insurance Brokers' Association Conference in Manchester, CEO of the National Cyber Security Centre, Lindy Cameron, highlighted the fact that the cyber insurance is currently one of the few "market-based levers for incentivising organisation to implement security controls and cyber resilience measures", and that each of us "has a responsibility address the gaps in our defences".
"...the cyber insurance industry can be a force for good in making the UK the safest country in the world to do business," she said. "Prosperity and economic security go hand in hand."
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