The Conservative government led by British Prime Minister Rishi Sunak declines to support a cyber insurance reinsurance plan akin to flood insurance, citing concerns over potential competition interference. Their response to recommendations from the Joint Committee on the National Security Strategy draws criticism for what’s seen as a failure to adequately address the ransomware threat.
Labour MP Margaret Beckett, chair of the committee, accuses the government of adopting an ostrich strategy towards national cybersecurity, suggesting that the UK remains exposed and unprepared. Ransomware attacks surged globally in 2023, affecting various sectors in the UK, including critical services like healthcare and public health agencies.
The parliamentary committee’s investigation reveals significant challenges in the UK cyber insurance market, including rising premiums and capacity shortages. Despite recommendations for government intervention, such as exploring a publicly-funded backstop for cyber insurance, the government maintains its stance against market interference.
Additionally, the government declines proposals to elevate ransomware as a priority issue and rejects the idea of requiring all ransomware victims to report incidents to authorities within a set timeframe. Instead, it emphasizes existing resources and ongoing efforts to enhance reporting mechanisms and provide assistance to affected organizations.
Reference:
