Developments in Cyberinsurance

GlobalData’s 'Insight Report: Developments in Cyberinsurance' analyzes the evolution and expansion of cyberinsurance in the global market.

The globalization of value chains, rapid urbanization, continuous financial integration and the internet’s ubiquity have accelerated worldwide economic growth in the past few decades. Unfortunately, these developments have also significantly increased vulnerability to external shocks in the form of cybercrime.

Increasing digitization has allowed cybercriminals to hack important data or disrupt the operational efficiency of various organizations. The growing threat of cyberattacks has positioned cyberinsurance as an important and effective risk-mitigation tool.

Although cyberinsurance does not replace the need for cybersecurity technology, it has the ability to complement cybersecurity standards through mitigating cyber risk.

The report also analyzes regional and industry level developments, and risks pertaining to cyberinsurance. Knowledge of cyber-risk at granular level is critical when underwriting cover suited to business or industry-specific needs.

Scope

• This report analyzes the significance of cyberinsurance as a cyber-risk-mitigation tool.

• It analyzes policy gaps and underwriting issues.

• It discusses innovation in cyberinsurance with respect to product development and strategic partnerships

• It provides a snapshot of recent developments in the leading cyberinsurance regions

Key Highlights

• Cyber-risk insurance premiums are relatively high – around three times higher than commercial general liability policies, and six times higher than property insurance, according to a study by Marsh and the UK Government in 2015.

• The final version of General Data Protection Regulation (GDPR) has been adopted and will be enforced by May 25, 2018, following a proposal by the European Commission in 2012.

• According to the annual Ponemon Cost of Data Breach 2016 report, the consolidated average per capita cost for 12 countries – the US, Canada, the UK, Germany, France, Italy, Australia, Japan, the Middle East, Brazil, India and South Africa – was US$158, compared to an average of US$154 in 2015, excluding South Africa.

• Europe has the world’s second-largest regional cyberinsurance market, accounting for around US$150 million in premiums according to broker Marsh & McLennan. Allianz has estimated that the European cyberinsurance market could reach US$1 billion by 2018, as regulation and overall knowledge grow.

• In May 2016, the Hong Kong Monetary Authority (HKMA) announced its Cybersecurity Fortification Initiative (CFI) that establishes a framework for assessing vulnerability to cyber-risks, creates a program for building cybersecurity expertise, and provides a platform for industry sharing of cyberintelligence.

Reasons to Buy

• Build an understanding about the cyberinsurance market from a global perspective

• Develop an insight into market trends and drivers

• Gain an understanding of regulations in particular regions or industries related to cyberinsurance

• Learn about different competitive strategies in the industry