This white paper examines the current state of the cyber threat worldwide and the insurance industry’s efforts to underwrite coverage. U.S. businesses spent more than $2 billion for cyber insurance last year as interest in this coverage grew dramatically following numerous high profile data breaches. Some estimates suggest the cyber insurance market could triple by 2020. The paper surveys the rapidly evolving market for cyber insurance, including pricing and limits purchased. At the same time it notes that cyberattacks have the potential to be massive and wide-ranging due to the interconnected nature of the risk, creating a challenge to insurers trying to write the business. How insurers manage these risks while creating products for this multi-billion market opportunity will determine how well we all will be protected in the years to come.
Insurance Information Institute
- Robert P. Hartwig and Claire Wilkinson