Cyber insurance continues to gain attention throughout the world
Fitch Ratings has released a new report that highlights cyber insurance as a key growth opportunity for the reinsurance industry. Major cyber attacks have been making headlines recently and the insurance industry is becoming subject to a growing portion of these attacks. Recently, health insurers Anthem and Premera Blue Cross were victims of major data breaches that compromised the information of several million consumers. For the reinsurance industry, the digital world could hold some promise, but also significant risks.
Report highlights the risks associated with cyber attacks and the losses that could result from these attacks
According to the report from Fitch Ratings, cyber risk has the potential to cause significant losses. Cyber insurance offers coverage against digital attacks, and can provide some support for companies acquiring support from security firms and mitigating the damage done to their reputation due to a major attack. Losses are being compounded due to the growing sophistication of cyber attacks, however, which is becoming a major problem for the insurance industry and could cause some significant turbulence for reinsurers.
Insurers are becoming better at managing the risks that exist in the digital world
Fitch Ratings suggests that insurers may play a larger role in mitigating cyber risk, especially when they work alongside initiatives from the world’s governments. The insurance industry has a long history of observing and managing risks and this expertise could be useful in combating cyber attacks. The report shows that the insurance industry’s ability to monitor risks specific to the digital world is beginning to evolve, become more comprehensive.
New laws in Europe could increase the demand for cyber insurance
Fitch Ratings notes that new data protection legislation in Europe could increase the demand for cyber insurance coverage. This legislation would require companies to inform consumers of cyber attacks and would offer more protection to those that have been victims of these attacks. Throughout Asia, regulations concerning cyber attacks vary from country to country. In the United States, regulations concerning cyber attacks are becoming more advanced, which may also lead to a growing demand for cyber insurance coverage among businesses.