The cyber-risk insurance market isexperiencing rapid development, with the rise of global grosswritten premiums from US$850 million in 2012 to an estimated $2.5billion in 2014, revealed a new report from Timetric. Agrowing number of cyber attacks, and the increasing reliance ofbusinesses on technology for operational capabilities and storingdata, are responsible for the traction the cyber-risk insurancemarket is gaining. But insurance firms are responding slowly tothis rising demand, and a number of imperfections in the market areleading to a suboptimal outcome.

“Total global losses from cyber crime stood at $445 billion asof June 2014. With governments becoming increasingly involvedin cyber threats, the prospect of compulsory cyber-risk insurancecould become a reality. It would have a transformative impact uponthe market and could create a strong source of future revenues fornon-life insurers,” comments Jay Patel, insurance analyst atTimetric.

Over the last few years, insurers have experienced rapid growthin the demand for cyber-risk insurance. Interest in cyber insurancehas grown primarily among businesses that hold sensitive consumerinformation such as telecommunications companies, financialservices organizations, and retailers.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.