This, according to a recent announcement made by Allianz, the largest insurer in Europe.
Allianz, the biggest insurer in Europe, has just revealed that its analysis of Eastern Europe, Asia, and Brazil is experiencing an increase in cyber threats and that this is driving industrial insurance revenue.
The insurer, based in Munich, has determined that this unit will experience growth from this risk.
According to chief executive officer, Axel Theis, of Allianz’s Allianze Global Corporate & Specialty industrial insurance unit, “New products such as cyber-risk protection and coverage for renewable-energy plants will boost premiums in the mid-term.” He also added that the insurer intends to increase their presence in Russia, Africa, Asia, South America, and the Nordic countries.
Industrial insurance companies such as Allianz are now offering coverage to businesses against sizeable risks.
This industrial insurance coverage is being offered by companies such as Zurich Insurance Group and American International Group, as well as Allianz. They cover businesses for everything from damage to their properties to interruption to business as well as liability for managers. Swiss Re and other reinsurers are also offering similar types of protection on an increasing basis in order to broaden their offerings.
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Theis, who has been running the industrial insurance unit at Allianz since it first opened in 2006, explained that the insurer hadn’t seen price increases across the entire market since 9/11. He noted that the rates had been struck by large amounts of capital and low interest rates. He added that it is their preference to change regional market, product, or segment rates than it is to alter them on a wide scale.
It is protection against cyber threats that is currently seen as one of the biggest drivers in the price of industrial insurance. The company has been selling coverage against cyber risks since July and has been providing protection against third party or their own damage when data breaches, IT glitches and hacker attacks occur. The European market is, according to Allianz, going to grow from last year’s $202 million in premiums to up to $1.21 billion in premiums in the year 2018.