The massive insurer is hoping to increase the coverage it provides against data breaches and climate change.
Zurich Insurance Group is now broadening its focus to be able to meet the growing corporate demand for coverage such as cyber insurance against data breaches as well as against the risks that are posed by climate change.
This announcement was made by the general insurance chief at Zurich, this week.
A growing number of businesses are seeking cyber insurance to cover themselves against the economic challenges – or catastrophe – that can result from hacking. This includes the financial burden of regulatory fines for data breaches as well as actual physical damage to their computer systems. This statement was explained by Zurich’s general insurance chief, Michael Kerner.
Though the cyber insurance sector still isn’t tremendously large, it is experiencing rapid growth.
Kerner stated that “The size of this business is still relatively small, but it’s growing quite rapidly.” Massive corporations, such as Sony Corp, and others, have experienced enormous data losses as a result of tricky and determined hackers. These have only helped to underscore the risks associated with data breaches and the importance of the type of coverage that cyber insurance can provide.
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The situation is illustrated only more clearly with the European Union’s latest threats to increase the fines to companies that are unprepared. Cyber insurance can help organizations to mitigate the risks associated with these attacks, including everything from reputational damage to the fines, themselves.
Zurich isn’t alone in seeing the potential in the cyber insurance sector. Allianz and a number of other giants have been keeping their eyes on the market.
At the moment American cyber insurance products are bringing in approximately $1.3 billion in premiums every year. However, continental Europe is generating only €150 million, according to a senior exec from Allianz. In the situation of both mature markets and those that are only just emerging, hackers can generate devastating damage once they choose their targets – even in the cases where preventative efforts have been carefully made. Coverage products help to either mitigate the risks or transfer them over to the insurers.