Swiss Re head of cyber explains the reinsurers’ cautious approach

While cyber demand is on the rise, Swiss Re takes a cautious approach in underwriting and suggests insurers should do the same as the ‘cybergeddon’ is yet to happen.

The insurance industry faces significant growth in cyber insurance demand due to advancing digitisation and recent attacks like Petya and WannaCry.

Individuals are becoming increasingly vulnerable due to the prevalence of Internet of Things, connecting all sorts of objects such as TV’s, cars and fridges. As the number of connected devices in use is already growing exponentially, experts believe that it is only a matter of time until personal cyber insurance will experience a similar boom as the commercial lines. In the commercial space, cyber insurance has been a hot topic for a while.

“Unfortunately, we have the emergence of the cyber risk insurance market while we are in a very soft market environment,” says Maya Bundt, head of cyber & digital solutions at Swiss Re.