Business are estimated to lose a staggering $400bn this upcoming year due to cyber attacks. And 60% of business leaders recognize cyber attacks as a threat to growth. As a result of this continued explosion of Internet crime, industry experts expect the cyber insurance to triple by 2020, generating $7.5bn in annual premiums. As carriers struggle to price this uncertain risk, the market will be open to disruptors who can aggressively understand and price it.
Data from the technology policy division of the Financial Services Roundtable found the demand for cyber insurance rose by 21 percent across all industries, with the biggest increase in coverage buying rising 29 percent for financial institutions. Cyber insurance policies are offered by more than 70 carriers, according to a Gartner Research report, and include liability coverage for exposing confidential information, paying to notify customers of a breach and providing them with credit-monitoring services, Lou Shipley, CEO at Black Duck Software, recently stated in an article he wrote for The Wall Street Journal. But PwC’s report suggests insurers, reinsurers and brokers may have to enhance their offerings in order to keep up with growing competition in the market.