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The cyber-risk insurance market is experiencing rapid development, with the rise of global gross written premiums from US$850 million in 2012 to an estimated $2.5 billion in 2014, revealed a new report from Timetric. A growing number of cyber attacks, and the increasing reliance of businesses on technology for operational capabilities and storing data, are responsible for the traction the cyber-risk insurance market is gaining. But insurance firms are responding slowly to this rising demand, and a number of imperfections in the market are leading to a suboptimal outcome.

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