The UK government has joined forces with the insurance industry in order to bring the issue of cyber security into the mind-set of vulnerable businesses.

Newport-based James Davies, from Jelf Insurance Brokers, said: “This is a crucial issue facing all businesses, no matter where they are located. This is one concern that is just as relevant for businesses in Swansea as the Silicon Valley.”

Government officials say cyber insurance should be a crucial consideration for businesses and sufficient protection would allow the UK economy to truly flourish.

The government revealed figures showing that some 81 per cent of large businesses and 60 per cent of small businesses suffered a security breach in the last year, resulting in costs to businesses almost doubling in the 12-month period.

Minister for the Cabinet Office Francis Maude welcomed the agreement and said he hopes the move will help the UK become one of the most secure places in the world to do business.

James said: “We have seen a sharp rise in businesses taking out cyber liability insurance in recent times. They are clearly now aware of the devastating effects of cyber intrusion, and are rightly protecting themselves against it.

“We are pleased that the UK government is taking such a keen interest in the topic, and are working with us to protect vulnerable businesses across the UK.”

The minister met with a dozen of the UK’s leading insurers this month, following several months of discussions between government and insurers, to find a way to drive adoption of the standards set out in the Cyber Essentials Scheme in the private sector.

In a joint statement, they agreed that the main objective of the partnership would be to increase awareness of threats to businesses.

This latest initiative builds on the government’s ongoing relationship with the industry under the National Cyber Security Programme to ensure that UK businesses have better cyber security protections in place.

Jelf Insurance Brokers has more than 30 offices across England and Wales. The company provides a full range of insurance services to businesses of all sizes, including specialist insurance in niche sectors and personal insurance to individuals.