Majority of UK firms hit by cybercrime last year

81 per cent of large firms and 60 per cent of SMBs caught out by online crooks, report claims

More than 80 per cent of large UK firms fell victim to a security breach last year, according to a report by the government, which branded cyberattacks a "present and growing danger".

But the report found that only two per cent of large UK firms have "explicit" cyber insurance, and for smaller firms, the "figure drops to close to zero".

The UK Cyber Security: The Role of Insurance in Managing and Mitigating Risk report was published by insurance firm Marsh and the Cabinet Office after the duo analysed survey data and interviewed insurance firms over a four-month period.

Minister for the Cabinet Office Francis Maude said in the report: "The cyber threat remains one of the most significant – and growing – risks facing UK business. Eighty-one per cent of large businesses and 60 per cent of small businesses suffered a cybersecurity breach in the last year, and the average cost of breaches to business has nearly doubled since 2013."

But despite this growing threat, the report found that UK businesses are not taking adequate steps to insure themselves from the effects of cyberattacks.

"The cyber insurance market is still in its infancy, with around half the business leaders we talked to not aware that insurance covers cyber risk, and just two per cent of large firms having explicit cyber cover, a figure that drops to close to zero for smaller firms," the report said.

The report talks up the government's Cyber Essentials Scheme (CES) which it launched last June. CES offers organisations advice on what measures to take to mitigate the risks of cyber threats and companies completing its CES Assurance Framework are given a badge to prove they are doing what they can to eliminate the risks.

Marsh said it will cover SMBs' costs for the Cyber Essentials certification, "to reflect the risk reduction that accreditation represents".

Last month, Wick Hill became the first UK security distributor to be certified on the government's CES.