Sharp growth in cybercrime insurance

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Sharp growth in cybercrime insuranceThe Financial Times quotes a report compiled by CFC that shows a 50% growth in UK insurance policies taken out against cyberattacks during 2016. Lloyd’s of London has seen a huge increase in cyber insurance uptake, and has now introduced 15 different types of cover just for cyber crime, in anticipation of a continuing surge in 2017. On the world stage, the total written premium currently stands at an estimated $2.5bn, with the potential to reach $20bn by 2025.

New EU regulations on how companies should react to data breaches come into effect in 2018, carrying with them the threat of heavy fines. This is certain to increase demand for insurance cover still further. The insurance industry’s greatest fear is the possibility of a major systematic cyber disaster – the digital equivalent of a hurricane or earthquake that takes out a large percentage of the world’s computer systems. The PRA is looking at ways in which the industry can improve the management of its cyber insurance business.

The full article sits behind a paywall, but those with FT subscriptions can read it at https://www.ft.com/content/a767e518-c91e-11e6-8f29-9445cac8966f

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