Cyber insurance is becoming more popular among the world’s various organizations
Demand for cyber insurance is on the rise throughout the world, according to a new report from Timetric. This is largely due to the growing frequency of digital attacks against businesses and governments. These attacks are having a major financial impact on several organizations and consumers. With more businesses beginning to rely on technology and the digital space, cyber attacks are becoming a significant concern and organizations want protection against these attacks.
Some $2.5 billion cyber insurance premiums collected in 2014
The report shows that premiums collected by cyber insurance providers grew from $850 million in 2012 to more than $2.5 billion in 2014. According to the report, the global losses experienced from digital attacks came in at $445 billion as of June of 2014. Governments were notable targets of digital attacks as they, of course, they have access to valuable information and data that could be used in an aggressive manner against others. The growing frequency and intensity of cyber attacks could have a major impact on the insurance industry overall.
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Europe is experiencing an increased demand for this form of insurance protection
The demand for cyber insurance coverage has grown significantly in Europe, where cyber attacks appear to be particularly common. Demand has also swelled due to the implementation of the new General Data Protection Law, which will begin being enforced in 2017. The law requires that organizations inform consumers with a notification concerning data breach and the impact of cyber attacks.
Majority of premiums collected by insurers is coming from the US market
While the demand for cyber protection is up in Europe, 90% of the premiums collected by cyber insurance providers are coming from the United States. The reason that the European market is somewhat smaller is because there are relatively few cyber insurance products available to businesses in the region. Awareness of cyber insurance protection is also a problem, with some businesses showing little interest in this type of insurance coverage because they do not believe they are targets of digital attacks.