Increase in cyber claims reflects increasing dependency on IT systems

There has been a 56% increase in cyber claim notifications over the last year at Willis.
“The rise is reflecting the evolving regulatory environment and a growing dependency on IT systems,” Willis broker Jeremy Smith told Lloyds.com.

A number of factors are driving the increased claims, including an increased reliance on electronic data processing and more sophisticated commercial crime, said Chris Newton of specialist media and cyber Lloyd’s underwriter agency Principia.

Also, more confidential and sensitive information is now kept in electronic form, as companies seek to streamline and outsource data processes, Newton told Lloyd’s.com

“The shift in importance of IT to firms of all sizes and in all industries has spawned a growth in cyber crime, the symptoms of which are an increase in insurance claims being reported,” Newton said.