Cyber attacks drive sales
05 Jan 2017
It has been found that two in five (40%) insurance companies in the UK have seen their cyber book grow by over 50% in the last twelve months, according to research by CFC Underwriting.
Their survey conducted at the 2016 Cyber Symposium, which surveyed 57 insurance bosses, showed that a quarter of firms noted that the "fear factor" of impending and expensive attacks played a big part in the increase of policies.
The top driver for demand in 2017 will be cyber insurance the respondents predicted.
The report noted that claims amongst their customers had increased by 78% from 2015 to 2016.
Speaking at the event, Lloyd's chief executive office Inga Beale, said: "There is a huge exposure out there for businesses and there is still a certain complacency amongst them that they have it under control.
"At Lloyd's we are seeing huge cyber insurance uptake, and last year we introduced 15 different types of cover just for cyber, in anticipation of this demand rising in 2017."
Graeme Newman, chief innovation officer at CFC Underwriting added that cybercrime was the fastest growing form of crime in the world.
"[This] means that for UK firms, it is not a case of ‘if' you'll experience a loss, but ‘when'," he continued.
"As the nature of crime changes, so too must insurance policies. The value of intangible assets now generally outstrips the value of tangible assets on corporate balance sheets. As the world becomes increasingly connected, insurers need to design future-proof policies."
According to the firm cyber polices are the fastest growing line of insurance in the world. It said the total written premium globally today is estimated at $2.5bn (£2bn).
Citing figures from Allianz, CFC Underwriting added that the insurer estimates it will reach $20bn by 2025.
Also, a likely cause for an increased uptake in cyber insurance is the General Data Protection Regulation, which will impose heavy fines on firms who fail to safeguard data appropriately in 2018.
In addition, electronic computer crime was cited as the area of cover that was most likely to lead to an increase in cyber insurance claims in the UK (53%), with non-physical business interruption coming in second (25%).
- Insurance Age