March 5, 2018 11:30
The offer against the cyber risks that could extend further in 2018, predicts the firm credit rating Fitch Ratings, while the number of data breaches has increased from 44.7 % in 2017 in the United States, according to an analysis of the Identity Theft Resource Center and Cyber Scout.
A sharp increase in the number of attacks highlights the challenges faced by insurers during the underwriting and to determine a cagr of cyberexposition in a rapidly changing environment, says Fitch.
A sector that is profitable
For the moment, the insurance sector cyber is profitable, but it is a trend that is expected to dwindle, according to the firm. She added that new players in the market may be more likely to provide rates too low for these risks, and subject to greater losses.
“The insurance cyber brings opportunities for business growth for some insurers, but could bring significant losses for other insurers in the future,” says the firm.
A growth in demand
Fitch reports that it is possible that the demand for protection against cyber risks is increasing, especially because the cyber is at the top 10 risks for business a report ofAllianz. In addition, a study of Lloyd’s and AIR Worldwide estimates that a cyber attack can cause between 6.9 and $ 14.7 billion in damages, while only 20% of these losses are insured.
“More companies are looking for a policy against the cyber risks in full to cover a variety of risks. For example, an increase in data theft and attacks rançongiciel lead to a greater interest in the covers against business interruption and damage to property. Similarly, an increase of lawsuits filed by shareholders of public companies against cyber incidents that have caused significant loss and damage to reputation leads to an increase in demand to cover cyber-related policies in the field of liability of directors and officers “, points out Fitch.