CDM-CYBER-DEFENSE-eMAGAZINE-March-2019

Some Important Developments in the Cyber Insurance
Industry
Cyber Insurance: The Ultimate Solution to Mitigate Cyber
Swati Tamhankar, Jr-Executive-Digital Marketing, Allied Analytics LLP
Technology has become a part of our lives. It is constantly transforming and improving our lives
with innovations such as the internet of things (IoT), health-tech, 3d-printing, artificial intelligence
(AI), robotics, and more. However, it also has its share of risks. The expansion of information
technology in all spheres via social networks, mobile devices, wireless technologies, and cloud
services resulted in more vulnerability. Cyber risks or threat is a growing concern for individuals,
institutions, and businesses worldwide. Effective policies are required by organizations to protect
themselves against threats. Therefore, several organizations are opting for IT security partners
for their protection or depending on their insurers for cyber insurance products and services.
Cyber insurance providers basically help companies prepare for cyber threats by contributing to
minimizing the said loss or damage and bringing the situation back to normal.
The market for cyber insurance is a rapidly changing and has seen strong growth in the past few
years. The increase in demand for cyber insurance arises from new regulations, growing
awareness of cyber risks among top-level high executives as well as the rising number of cyberattacks
across the globe. However, lack of standardized policies impedes the market growth. As
per the report by Allied Market on the cyber insurance market, the industry is likely to accrue a
sum of $14 billion by 2022, registering a CAGR of 28% during the forecast period, 2016-2022.
Some of the players operating in the market include American International Group, Inc., The
Chubb Corporation, Zurich Insurance Co. Ltd., XL Group Ltd., Berkshire Hathaway, Allianz Global
Corporate & Specialty, Munich Re Group, Lloyd’s, Lockton Companies, Inc., Bit Sight
Technologies, Pivot Point Risk Analytics, and more.
A series of launches and acquisitions took place in the space recently. One of them is the launch
of a cyber self-assessment tool by Marsh, a global professional services firm headquartered in
New York. Another is the acquisition of E-Risk Services, a liability insurance program manager