A new HSB report has indicated that 50 percent of businesses have either bought or increased their policies.
A report by the Hartford Steam Boiler Inspection and Insurance Company (HSB) based on a recent survey of risk managers has suggested that 50 percent of businesses either purchased cyber insurance coverage for the first time or increased the amount of protection they carried in 2015.
Equally, the survey revealed that about 30 percent of companies have no cyber insurance policies at all.
Among the companies that didn’t purchase cyber insurance coverage, there were some primary reasons that were stated that stopped them from going forward. Among those reasons were the perceived complexity involved (44 percent), a lack of a perception of significant threat to make a policy worthwhile (34 percent) and the price of the coverage (22 percent). The market for cyber risk insurance has been experiencing a considerable evolution as providers keep up their efforts to more thoroughly understand the underwriting requirements for this type of policy. Equally, it has led certain experts to deem this type of coverage to be on the volatile side.
However, the companies behind cyber insurance coverage are continuing to see its considerable potential.
For example, an Allianz Global Corporate & Specialty report has forecasted that premiums for cyber insurance policies will increase worldwide from the current estimated $2 billion, to reach closer to $20 billion throughout the next ten years.
The survey conducted by HSB involved the participation of 102 risk managers from businesses in the United States. It was held in April 2016 at the RIMS conference. The results showed that the majority of businesses have been affected by cyber attacks in some way and in varying degrees of severity. Of every 10 businesses, 9 had experienced at least one incidence of hacking within the year prior to the survey. Moreover, that rate increased by 21 percent throughout last year.
Among the participating risk managers, 64 percent said that they had experience over 6 unique incidents of hacking within the twelve months prior to the survey. That was an increase of 32 percent over the figure collected in 2015. It is for this reason that insurers continue to see massive potential in the cyber insurance coverage market.