A combination of high-profile cyber incidents and stricter data protection regulations have helped drive increased uptake of cyber insurance globally. Within the UK, one area that will prove to be a hotbed of growth for the cyber insurance market is SMEs. Current uptake of cyber insurance is still relatively low compared with other commercial insurance products, but growth has and will continue to occur, with the number of SMEs holding a standalone cyber insurance policy rising by 14 percentage points in 2018.
It can be noted that the global cyber insurance market is poised for significant growth. The US cyber insurance market is far more developed than its European counterpart in terms of size, and could be seen as an indicator of the full potential the European market holds.
The insurance industry will experience considerable disruption throughout the value chain as the cyber insurance market grows globally. The complexity and continuous evolution of the risks faced by those providing cyber insurance make it extremely challenging to fully understand and mitigate against. As a result, partnerships with those outside of insurance - in particular cyber security providers - will be fundamental to providing policyholders with an adequate level of cover.
The main area in which partnerships will prove essential is in the claims environment. Failure to effectively manage the fallout following a cyber-incident can result in the associated costs spiraling. Partnerships with cyber security experts will reduce the possibility of mismanagement, reducing the costs for both the affected business and the insurer.
The report "Cyber Insurance - Thematic Research", provides an in-depth analysis of the cyber insurance market. It looks at market size as well as claims, contextual and economic factors, regulation, and opportunities. It provides a thorough overview of the market along with analysis of how the development of cyber insurance will impact the insurance value chain.
- Large liability insurers stand to benefit the most from the growing demand for cyber insurance. Leveraging their knowledge of liability products and reputation in the market will allow them to become leading players.
- Cyber security providers will experience a considerable increase in demand for their expert knowledge, not only to assist businesses post-claim but also in the assessment of a company’s exposure to cyber risks due to the lack of available historical data.
Reasons To Buy
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Be prepared for how regulation will impact the cyber insurance market over the next few years.