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Cyber insurance is a rapidly growing market for insurers as more corporates realise the very real risks they face. But there is also growing frustration that insurers are not structuring coverages in a helpful way, and the buying process remains unwieldy, as Intelligent Insurer discovers.
Cyber insurance holds great growth potential for insurers as digitisation increases the exposure of all industries, but many buyers still need to come to grips with this emerging risk and insurers need to figure out the best way of packaging and selling it—meaning the purchase process remains cumbersome.
Demand for coverage is burgeoning and insurers are obliging. The standalone cyber market reached an estimated $3.5 billion in written premiums in 2016, and many analysts suggest that this figure will double over the next two years, largely driven by the incoming EU General Data Protection Regulation (GDPR).
But it’s not only new data protection regulation that is driving cyber insurance demand—recent cyber events have exposed the vulnerability of companies such as Maersk.
Cyber, Insurance, Reinsurance, Growth, GDPR, Inga Beale, Global