Cyber insurance is helping to protect global insurance companies against the risk of cyber breach. But, the impact of data breaches can be devastating, according to a new study from the Airmic report.
Cyber threat spending on insurance is over $9 billion, according to Global Insurance Market Forecast 2017/18. Insurers expect Cyber to be in the top 15 of claims costing $75 billion in 2017.
Cyber coverage is playing a key role in protecting insurers from cyber breach losses. But also cyber risk is expanding to provide reimbursement for other types of data loss. For example, including compensation for breaches caused by commercial and personal-use online media.
The survey found that while cyber insurance tends to have a low premium, policyholders are paying higher premiums than for traditional insurance. The reason is to compensate for lost revenue, customer support, reputational damage and other associated costs.
The importance of cyber insurance is not going away. The costs to customers, advertisers and business is expected to reach $1.4 trillion in 2017.
For this reason, cyber insurance as well as cyber protection products and services is still developing. “This means there is a lot more innovation to come as we are facing and managing current and future risks on a global scale”. – said the Airmic report.
Most of the largest reinsurance brokers, insurnace providers, cyber insurance underwriters and commercial insurers, both in the life and non-life industry completed the survey.
Andrea Miteski, PhD and MD in the field of reinsurance. Long term senior insurance executive with specialization of reinsurance optimization.