Concerns have been expressed that the growth of the cyber-insurance sector risks lulling end users into a false sense of security.
Having already taken off in the US, cyber-insurance is now gaining traction in the UK as firms move to protect against potential losses associated with data breaches.
Last week, Lloyd's of London claimed in a Telegraph article that it had experienced a 50 per cent rise in cyber-insurance submissions in the first three months of 2015, compared with the same period last year.
However, some are warning that cyber-insurance – which some in the channel see as a potential threat to sales – must go hand in hand with risk-mitigation strategies if it is to be effective.
Richard Pharro, chief executive of accreditation body APM Group, said the Lloyd's figures demonstrate that cyber risk is climbing up the boardroom pecking order but that he had reservations.
"It's important to remember that insurance is no cure-all and remedies under a contract may form part of, but should not be considered to be an entire risk mitigation strategy," he said.
"While cyber-insurance may offer the opportunity for those hit by cyberattacks the opportunity to recoup some of their monetary losses, little can be done to repair the reputational damage brought by a data breach, the negative impact on trust and lost intellectual property."
This echoes concerns raised by channel firms about cyber-insurance last year, with some seeing it as potential threat to sales and others cautioning that there is room for ambiguity in such a young market.
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