Life and pensions sector needs data security investment

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LONDON - Dangerously low spending in data security is threatening the UK life and pensions sector. The industry must commit investment to protect its reputation and increase market share, according to a new survey by industry IT firm Logica.

The white paper, entitled 'Information security in the UK life, savings & investment and pension sector, compares life and pensions' 7% of IT spending going on data security unfavourably with the 20% for the banking industry.

The study makes the case for a direct correlation between security spending and return on investment, but says security is neglected due to not being viewed as a board-level issue.

The survey represents the views of a third of the major players in the UK life, savings and investment and pensions sector, including Friends Provident, Standard Life and Liverpool Victoria.

"While the survey shows that the industry is taking the issue of data security seriously, this is not being translated into concrete actions," says Andrew Lloyd, director of strategic solutions in Logica's UK financial services division. "Security is a boardroom issue and customers are increasingly demanding greater levels of accountability. Investment in data security must increase very substantially in order to mitigate the loss of market share and loss of reputation."