A report published by the UK Government, along with insurance broker Marsh has revealed that most firms in the country are not insured against the risks of cyber attacks.
Reuters reported that only 2% of large British firms have cyber insurance, while the figures for smaller firms in the country is almost zero.
The report revealed that the companies that are not having cyber insurance are creating huge loss to the UK economy.
The government, along with the insurance industry, has to take the measures to encourage the firms to have insurance against cyber attacks, said the report.
A statement in the report was quoted as saying: "Cyber attacks against UK companies present a daily threat to normal UK business operations and are increasing in severity.
"While some market participants have suggested that a possible government backstop may be necessary, there is no conclusive evidence of the need for such a solution at present."
The report also suggested that data on cyber should be shared between the government, Lloyd’s of London market and Association of British Insurers.
The UK government is already supporting the terrorism insurance scheme Pool Re, and is working with insurers to create an affordable flood insurance Flood Re for households.
Image: Only 2% of British firms have cyber insurance said new report. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.