One area that has seen a lot of growth in the insurance industry in recent years is cyber insurance. This relatively new type of business insurance coverage is already drawing in a fair number of business customers; estimates put global spending on cyber insurance at $2 billion in 2015. And some predict that future years could see considerably higher spending totals.
While new and fast-growing types of insurance coverage can open up opportunities for insurance companies, difficulties can also come up in relation to such products. This could include special challenges when it comes to dealing with claims. Relatively new types of insurance can see unique issues and disputes when it comes to claims. Skilled insurance defense attorneys can provide guidance to providers of cyber insurance who are dealing with challenging matters related to claims here in Louisiana.
Another thing that can prove challenging for an insurance company when it comes to new types of insurance coverage is deciding what kinds of policies to make available. Recently, the company Deloitte put out a report on cyber insurance and noted that one of the things that can pose special difficulties for insurance companies when it comes to this type of insurance is a lack of data on cyber attacks.
Deloitte asserts that customer demand within the cyber insurance market is changing. Lack of data on cyber attacks could make insurers rather cautious when it comes to what policies they offer, which could make adjusting to this shifting demand difficult. Deloitte argues such a lack of data can create a “vicious circle” which could impair growth in this type of insurance. It recommended insurers look at their own cyber security operations when trying to gain the knowledge necessary to break such a circle.
It will be interesting to see how insurance companies that offer cyber insurance respond to the problem of lack of data on cyber attacks.
Source: Financial Times, “Cyber insurance ‘held back’ by lack of data,” Oliver Ralph, Feb. 22, 2017