https://www.cyberscoop.com/cyber-insurance-demand-cost-2019/
By Jeff Stone
CYBERSCOOP
July 29, 2019
There’s at least one part of the financial sector where hackers are good for
business.
Direct cyber insurance premiums grew to $2 billion last year, up 26 percent
since 2015, according to figures published July 25 by Moody’s Investors
Service. That figure represents less than 1 percent of premium insurance
revenue in the U.S., but it’s clear the increasing claims over the past three
years are driven largely by concerns about data breaches, distributed
denial-of-service attacks and, perhaps most notably, ransomware.
The problem, despite all the demand, is that some insurers are now re-thinking
whether it’s in their best interest to keep offering the plans that help
clients recover from devastating cyberattacks.
Swiss Re Americas, a reinsurer that primarily backs governments and other
insurance companies, is reluctant to embrace the cyber insurance market because
of unpredictable, and expensive, attacks like the 2017 NotPetya incident, which
the White House said caused $10 billion in damages.
“Nobody saw this coming,” J. Eric Smith, president and CEO of Swiss Re
Americas, said last week at the International Conference on Cybersecurity at
Fordham University. NotPetya was enough for the $34 billion company to
re-consider whether broadly offering cyber insurance was such a good idea.
[...]
--
Subscribe to InfoSec News
https://www.infosecnews.org/subscribe-to-infosec-news/
https://twitter.com/infosecnews_
