The imperative of data sharing is mounting within financial services market and it is the insurance industry has the opportunity to act first, says a new article from Banking Technology.
Nick Beecroft, manager of Emerging Risk and Research, Lloyds asserts key players “have a shared interest in this (data sharing) and emphasizes “we don’t want the state to dictate the direction of the market, but they can certainly do some things to mandate the core elements.” Thus far banks and other large financial institutions have relied on voluntary data sharing; however, the growing prevalence of cybercrime has created the need to establish comprehensive cyber risk prevention measures quickly and efficiently.
Currently, the executive’s perception of cyber security drastically overestimates corporate levels of protection and underestimates the risk of costly data breaches. Chief executive of Airmic, John Hurrell recently conducted a study that revealed 52% or surveyed CEO’s believed they had coverage against cyber risk while only 12% of CFO’s believed they possessed cyber policies. In reality, only 10% of surveyed firms possessed comprehensive cyber coverage. Increasing risk education around cyber liability is critical to changing corporate perception of cybercrime.