Recommendation 10

Cyber insurance can provide a vital lifeline for ransomware victims, offering the sort of support and technical advice not offered by state agencies, as well as driving up cyber security standards through conditions of coverage. Unfortunately, there remains a woeful lack of UK coverage: premiums are unaffordable for many organisations, and have increased drastically in recent years. There are precedents for more extensive Government interventions, where market failures in insurance have wider societal implications. Given the losses endured by ransomware victims and the costs to businesses and public finances, there is a strong economic case for the Government to do more. The Government should work with the insurance sector to establish a re-insurance scheme for major cyber-attacks, akin to Flood Re, to ensure the sustainability and accessibility of the market.