The Korean government has launched a research initiative with the Consortium of Computer Emergency Response Team, to boost the domestic cyber insurance market.
The Korean Ministry of Science, ICT & Future Planning’s new cyber-smart policies could include incentives for policyholders that make use of both cyber insurance and information security service providers.
On the cards is a possible insurance premium discount for firms with cyber insurance and information security management systems, although Business Korea said the offer made would be determined by each insurer active in the region.
The Korean cyber market, currently worth about 30 billion won, or US$26 million, is in early stages of development with low levels of uptake and just a few basic cyber insurance products on offer.
Cyber insurance is booming in highly developed markets, according to the Korea Insurance Research Institute, the U.S. cyber market has an annual growth rate of 26% to 50%, and as cyber attacks become more pervasive, frequent and devastating, the Korean government is ensuring the security of its economy and social security doesn’t lag behind.
Professor Kim Tae-sung at the Department of Information Security Management of Chungbuk National University, told Business Korea; “The growth of the cyber insurance industry has just begun in the majority of countries other than some advanced ones like the United States and there is still time for South Korea.
“South Korea’s insurance market is less developed than its IT industry and, as such, cooperation between its security and insurance sectors is essential as of now, and the cooperation can start from the development of a standard glossary for more communication between the two sides.”
