In a new report, Global Insurance Law Connect (GILC) predicts that cyber cover will become as ubiquitous as public liability or professional indemnity insurance as the level of threat continues to amplify globally.
It adds that while the increased demand has led to the growth of capacity in the market, the severity of attacks means that insurers are becoming warier about the risks they are willing to insure.
Giorgio Grasso, Leader of GILC’s Cyber Special Interest Group and a Partner at BTG Legal, commented, “The cyber market is incredibly dynamic at the moment, and what jumps out from this report is that while individual markets face similar challenges, the international response has been very diverse.
“Globally there is much higher demand for cover, at the same time as more sophisticated, expensive attacks are becoming more common. Rules on data protection are changing all the time, vary from country to country, and have inevitably impacted insurers’ assessment of the risk of providing cover.
“In less mature markets, we also found that there is work to be done on educating companies about the risks that they face and the steps they can take to mitigate that,” Grasso added.
“The world will only continue to digitalise, and so cyber insurance will only become more prevalent and more important. As we conclude in the report, it has to potential to become as ubiquitous as public liability or professional indemnity insurance.
“That’s why it is so important for our clients that we as a network do all we can to share knowledge with each other, and build a holistic, global view of this vital market. We believe that this report shows our ever-growing expertise and the continued value of our network to our clients.”
GILC’s report gathers insight from 19 countries on their domestic cyber insurance market.