“Mis-selling” warning issued on cyber

Consultancy Mactavish says cyber policies have “major flaws” and claims brokers and insurers use “scaremongering” tactics to make companies buy cover.

The majority of off-the-shelf specialist cyber insurance policies have “major flaws” and some companies are being “mis-sold” policies.

This is according to insurance governance consultancy Mactavish which has launched a Cyber Risk Consulting Practice for corporates.

The organisation also warned that some firms require entirely different cover to what they are sold and accused insurers and brokers of using “strong sales tactics and scaremongering” to encourage companies to buy cyber policies.