Organisations need to look at fast, accurate, efficient pricing and risk assessment for cyber insurance policies, writes AJ Thompson, CCO of the IT and data services consultancy Northdoor plc.
In the digital economy, companies can create automated connections with partners and customers to reduce friction and costs in the supply chain. However, increased interconnectivity contributes to a major new type of commercial risk: cybercrime.
As early as 2015, Lloyd’s of London estimated the annual cost of cybercrime to be $400 billion, representing an enormous opportunity for insurers. Allianz believes that cyber insurance premiums have the potential to reach US$20 billion by 2025. Meanwhile, Accenture estimates that just four percent of information-security budget is spent on cyber insurance. This apparent under-insurance is reflected in rapid premium growth: 75 per cent of companies now buy cyber insurance, up from 35pc in 2011, with the largest year-on-year increase seen in 2017-2018.
The opportunity for insurance firms is not limited by industry or company size: all organisations are potentially at risk. In many cases, attacks are automated and therefore relatively indiscriminate….
