Loss of brand reputation from cyber-attacks has been cited as a primary reason by most of the industry leaders for the mainstream adoption of cyber insurance programs in their operations. Since the persistent threat of cyber-crime continues to rise globally, the trend of intrusion of unauthorised access entities into critical data and illegitimate access to private and confidential business information also rises. This has led to huge loss of enterprise value, which is expected to continue over a period of time. Thus, with this loss getting huge day by day, the adoption of cyber insurance is predicted to escalate in the years to come.
The cyber insurance market is categorised on the basis of enterprise size, service, and industry. Large enterprises led the cyber insurance market in terms of size, due to their high purchasing power and the availability of sufficient funds for risk insurance. Since the premiums for cyber insurance are very high, SMEs refrain to buy expensive covers because of their limited budget constrains over cyber risk management.
Competitors in the cyber insurance market are investing in new product launches to cater to the larger market and expand their offerings globally. For instance, XL Catlin, part of XL Group, in July 2017, announced the launch of its cyber and data protection insurance policy in Asia-Pacific. The new policy designed by the company aims to protect businesses from the threats they face from a malicious network and breach of data.
- Increase in denial of service attacks.
- Malicious code threatens enterprise security.
- Supply chain cyber risk.
- Increasing criminalisation of the internet.
- Mandatory legislation regarding cyber security.
- Recent implications of WannaCry cyber attack.
- Impact analysis of drivers on market forecast.
- Lack of education in terms of business understanding.
- Continuous evolution of technology.
- Impact analysis of restraints on market forecast.
- Good deals for SMEs.
- Growing demand in Europe and Asia-Pacific.
Source: Business Wire