The chancellor, following the devastating atrocities in Paris, announced that infiltration of our online infrastructure ranks alongside “guns, bombs and knives” as a terrorist threat which the UK must urgently defend itself against. Mark Field describes this as a critical first step in tackling the evolving dangers to Britain’s national security, but questions how capable our major institutions and the broader economy would be when it comes to withstanding damage from a cyber-onslaught.
After the IRA bombing of the Baltic Exchange in 1992 when the scale of damage was so immense that re-insurers quickly withdrew cover for terrorism, it became clear that the gap could only be plugged if the insurance industry and government worked together.
On this topic, the Cities of London and Westminster MP said “the result was Pool Re, a partnership between the UK Treasury and Britain’s insurers which – for the first time ever – made government the insurer of last resort. Following the 9/11 attacks, its coverage was extended to include chemical, biological, radiological, and nuclear terrorism risks. Just as the terrorists have evolved, so have we.”
The article goes on to probe what an impending cyber attack would mean for the insurance industry. Click here to read it in full.