HDI Global CEO sees cyber driving commercial insurance growth

Cyber insurance is increasingly becoming a growth driver for German commercial insurer HDI Global, according to CEO Christian Hinsch.

"In the increasingly important area of cyber insurance we are seeing considerable interest on the part of industry and a rise in the number of policies taken out,” Hinsch said on Aug. 21.

“In Germany, it even became possible recently for companies with an annual turnover of EUR 5 to 50 million to buy such insurance protection online. Over the coming years, we anticipate significant increases.”

A number of cyber-attacks such as ‘WannaCry’ have been raising awareness and demand for cyber insurance from businesses. In May, ransomware worm WannaCry caused damage across the globe, stopping car factories, hospitals, shops and schools.

The US cyber insurance market, the most developed in the world, more than tripled in size between 2013 and 2016 with premium volume jumping to more than $3 billion from around $1 billion during the period, according to a June 13 market briefing by Munich Re and UK General at Lloyd’s of London.

“In the first half of the year we have already received more inquiries than during the entire twelve months of 2016,” Hinsch said. “A crucial factor here is that we have been quick to expand our range of products to multiple countries, including the Netherlands, United Kingdom, Austria and Switzerland.

As a result, HDI is one of the few internationally operating insurers that can draw on its own know-how in the field of cyber insurance spanning several countries and, what is more, that is consistently expanding this international expertise."

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