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September 17, 2018

Cyber-related losses in insurance firms to surge

More than 60% of insurance firms expect to face more than one cyber-related loss for every hundred non-cyber covered losses over the next twelve months, according to a survey by Willis Re .

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What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

Of those polled in the survey, over 60% expected cyber-attacks such as WannaCry or NotPetya to occur at least once every five years.

The IT/Utilities/Telecom industry group recorded the highest perceived property silent cyber risk factor. Forty two percent of firms in this industry said that they expect ten or more cyber-related loss for every hundred non-cyber covered losses.

The study also revealed a rise in the silent cyber exposure of other liability, with 62% citing the silent cyber risk factor in this area to be above 1.01 in 2018. The figure represents a surge from last year, when 35% held a similar stance.

The silent cyber risk factor in property was believed to be above 1.01 by 62% of respondents in 2018, compared to 47% of respondents last year.

In errors and omissions (E&O) and directors and officers (D&O) business lines, over 30% of respondents estimated their silent cyber factor to be 1.10 or above.

Willis Towers Watson global head of cyber risk solutions Anthony Dagostino said: “The insurance market considers ‘silent cyber’ or cyber-related losses under policies where cyber risk isn’t specifically included, to be a far greater risk than ever before.

“The 2017 WannaCry and NotPetya attacks highlighted this risk and potential damage across all business areas – causing significant concern around silent cyber. This increased risk perception has highlighted the need for specific cyber coverage, but competitive market conditions are limiting the scope for coverage or pricing adjustments to be made in other lines of business.”

Free Report
img

What will drive the cyber insurance market over the next 3 years?

The global cyber insurance market was worth $7bn in gross written premiums (GWP) in 2020. It will reach $20.6bn by 2025, as the market will continue to thrive post-COVID-19. Our recent report on Cyber Insurance reveals that cybersecurity was thrust into the spotlight in 2020 as COVID-19 forced businesses to digitize their processes and adopt remote working practices overnight. The pandemic also presented an opportunity for cybercriminals to exploit global panic, with a surge in cyberattacks occurring in 2020. The need for cyber insurance is apparent, but the market is not as easy to navigate as it once was. Use our report to guide and help you to:
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the fray.
  • Prepare for how regulation will impact cyber insurance over the next few years.
Download the full report to understand what to expect and how to align your business for success.
by GlobalData
Enter your details here to receive your free Report.

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