Cyber Insurance: Potential Buyers Should Act With Care Over The Mid-Term
There has been a vast amount of hype around cyber insurance in recent years, and many industry players are jumping on the bandwagon because they perceive it to be a lucrative niche.
In reality, the market is still maturing. It presents significant blockages that are confusing brokers, underwriters and regulators, and may limit the value many clients can get from products.
- Lack of actuarial and modelling data, due to the constant evolution of cyber threats, as well as structural data sharing and data reliability issues
- Fundamental lack of specialised cyber-security field expertise at key points in the market
- Conflicting regulatory concerns over mis-selling and systemic risks
- Too few significant court cases to predict how litigation could go
As nobody can predict future cyber-attack vectors, businesses cannot realistically expect to be insured indefinitely against unknown threats.
Corix Partners and Sequel have analysed the topic in depth throughout the course of 2016 and present their conclusions in this white paper which can be downloaded using this link: Cyber Insurance: Potential Buyers Should Act With Care Over The Mid-Term