The UK Government and insurance sector have set out a series of initiatives to help businesses reduce their cyber risk, and to cement London as the global centre for cyber cover.

A report published in conjunction with Marsh says attackers are increasingly sophisticated and businesses need to stop viewing cyber cover as an IT issue rather than as a key commercial risk.

Insurers and brokers must simplify and raise awareness of their cyber offerings, and ensure companies understand the extent of their coverage.

Less than 10% of large companies have cyber insurance, but 52% of CEOs believe they have protection in place.

The report recognises the extraordinary potential for cyber losses, due to the systemic nature of the threat.

It estimates the insurance industry faces a possible maximum loss of £20 billion ($37.8 billion).

Despite this, it finds no conclusive evidence to support calls for a government reinsurance backstop for cyber risk.

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