Part Two – The Digital Revolution (Part Six)

Economic Unit

Strengthening Engagement Between Government and Businesses

The government has recognized its important role in strengthening cybersecurity in the UK and has also emphasized the vital role that businesses play in enhancing national cyber resilience. Below are two examples of how the government and businesses are working together to address serious cyber threats in the UK:

Cyber Essentials

This is a government-backed scheme that helps organizations protect themselves against cyberattacks. Cyber Essentials represents the minimum cybersecurity standard for organizations in the UK.

The preparation process for assessment is an affordable and accessible way for organizations of all sizes to implement the technical controls needed to protect themselves against the most common cyber threats. According to the National Cyber Security Centre’s 2024 Annual Report, organizations that have implemented Cyber Essentials are 92% less likely to make a claim on their cyber insurance.

The British Chambers of Commerce hold Cyber Essentials Plus accreditation. Members of accredited chambers can benefit from discounted Cyber Essentials assessments and receive training packages, free cybersecurity guidance, and access to the Cyber Essentials Readiness Tool.

This program highlights the significant role that Chambers of Commerce play in helping businesses strengthen their cybersecurity. They serve as trusted sources of information and guidance, helping companies save time while implementing essential protective measures.

Cyber Reinsurance Scheme

Based on engagement between the British Chambers of Commerce and key stakeholders, it has been identified that many insurance companies are reluctant to offer cyber insurance. In cases where such insurance is available, many businesses report that premiums are prohibitively expensive or that the application process is overly complex.

A potential large-scale cyberattack can have severe financial consequences for businesses — including bankruptcy. Cyber insurance can enhance resilience against such attacks by encouraging businesses to take preventive measures, reducing the frequency of cyber incidents, and lowering overall risk exposure.

The British Chambers of Commerce recommend that the government collaborate with the insurance industry to establish a Cyber Reinsurance Fund to cover cyber risks. This initiative could promote effective cybersecurity practices across UK businesses, position the UK as a leader in cyber insurance, and build greater trust in the country’s digital resilience.

Recommendations

The government should seriously explore how to collaborate effectively with the insurance industry to create a national cyber reinsurance fund dedicated to cyber risk. Such a fund should support businesses by sharing data, standardizing risk assessments, and providing stable financial coverage against cyberattacks.

This mechanism should not only reduce businesses’ vulnerability to growing cyber threats but also promote effective cybersecurity practices across all levels of the economy—from small and medium-sized enterprises to large corporations—thereby strengthening national digital resilience.