Cyber risks decoded: A report on data risks, the law, risk mitigation and insurance

Overview

Cyber crime is not a fictional concept; it is a very real problem. Last year the cost of global cyber crime was estimated to be USD388bn - with an individual falling victim to a form of online crime every 19 seconds.

In today's multi-channel, mobile and inter-connected world, every element of society including government, industry, commerce, charity, health, education and individual citizens is increasingly at risk as more and more sensitive data is stored on a computer system somewhere in the world. The risks are constantly evolving as technology develops, and they are likely to become more acute as a new generation of smartphones effectively become mobile wallets, which will place ever greater volumes of personal and financial data at risk.

To understand these issues better, we interviewed IMRG - the UK's industry association for global e-retailing, four leading cyber and data protection underwriters, and members of the Lockton specialist technology and privacy practice in November and December 2011. We also undertook a variety of desk research. Our goals were to:

• Define the cyber threats to domestic and global businesses
• Quantify the costs of a data breach
• Understand current and future legal requirements
• Outline the insurance solutions available