How the Proposed UK Cyber Security and Resilience Bill Can Unlock Growth in the Nation’s Cyber Insurance Market

Key Takeaways 1

Introduction 2

The UK Faces More Sophisticated, Frequent, and Expensive CyberAttacks 3

The UK’s Underdeveloped Cyber Insurance Market Exacerbates Risks 5

The UK’s Cyber Insurance Market is Underdeveloped Because of its Current Regulatory Policies and Inconsistent Industry Practices 6

Limited Regulatory Pressure Contributes to an Underdeveloped UK Market 6

Inconsistent UK Cyber Insurance Industry Practices Have Stifled Insurance Uptake 8

Recommendations 10

Establishing a Confidential Cyber Incident Information Exchange Platform 11

Creating Model Cyber Insurance Wording and an Underwriting Glossary 12

Introducing Clearer, Objective Definitions for Firms the Bill Captures 12

Prioritizing Risk-Based Over Size-Based Classifications 13

Establishing a State-Backed Cyber Reinsurance Pool 14

Launching a Cyber Insurance Sandbox 15

Conclusion 16

Endnotes 17