Survey finds cyber-attack worries have hiked up the price of insurance

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25th January 2017 12:47 - Information Technology

Survey finds cyber-attack worries have hiked up the price of insurance: According to recent IT market research by CFC Underwriting, approximately 40 per cent of insurance companies have watched their cyber book increase by 50 per cent in the last year.Survey finds cyber-attack worries have hiked up the price of insurance

CFC Underwriting conducted their survey at the 2016 Cyber Symposium and questioned 57 insurance bosses. Of the bosses, 25 per cent said that they had noticed that the fear surrounding expensive and impending cyber-attacks had played a crucial role in the price hike of insurance policies.

The respondents of the survey predicted that the main driver for demand in this year will be cyber insurance.

The findings also revealed that between 2015 and 2016, claims amongst the respondents’ customers had increased by 78 per cent.

CFC Underwriting revealed that cyber insurance policies are the fastest increasing field of insurance in the world, with the total written premium globally today being estimated at £2 billion or $2.5 billion.

Taking findings from Allianz into consideration, CFC Underwriting further added that insurer estimates will hit $20 billion by the year 2025.

Another potential cause for a surge in cyber insurance uptake is the General Data Protection Regulation, which will mean that companies will have to pay a hefty fine if they fail to safeguard their data appropriately in 2018. As well as this, electronic computer crime was cited as the area of insurance cover which was most likely to result in a surge in cyber insurance claims in the United Kingdom (53 per cent), with non-physical business interruption following in second place (25 per cent).

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