Brussels, 04/07/2012 (Agence Europe) - According to a new report by the European Network and Information Security Agency (ENISA), Europe's citizens and businesses could benefit from better protection for their computer systems and data if the cyber insurance market can be kick started. The report, “Incentives and barriers to the cyber insurance market in Europe”, highlights the fact that, while cyber security is an important concern for European and national policy makers, businesses and citizens, the traditional coverage offered by Europe's insurance providers may, with some exceptions, not comprehensively address digital risk. This is due to the lack of reliable data on the scale of the risk and the kind of risk against which individuals and institutions should be insured. ENISA's Executive Director, Professor Udo Helmbrecht, said “this new ENISA report indicates that there is potential for Europe's cyber security policies and legislation must be complemented by a prevention-focused cyber insurance market. As well as providing reassurance that proper cover was available, a developed market in this area would help to improve levels of cyber security by putting a true cost on cyber incidents and showing the benefits of implementing good security practices”.
To relaunch the market, ENISA makes four recommendations: 1) collection of empirical data on cyber insurance in Europe, looking at types of risk insured, premiums paid and levels of payouts to determine future trends; the action could be taken by insurance underwriters, firms or regulatory authorities; 2) examination of incentives for firms to improve their data security as a way for them to reduce their risk and financial liability if they breach data protection regulations; fact-finding with the European Commission would be a first step to understanding this area; 3) establishment of agreed frameworks to help firms put a measurable value on their information; the work could be assisted by privacy and information security advisers, underwriters and the European Commission and ENISA could also provide further support; and 4) exploration of the role of governments as an insurer of last resort, following other models where policy intervention is in evidence when catastrophic risk is involved. This could be investigated by EU member state governments and the European Commission. (IL/transl.fl)