Sunday, September 22, 2013

Global Impact: Cyber Insurance Growing Slowly, Surging in US, Europe, Threats Abound

According to AFP, cyber insurance is already a well-established market in the US, but in Europe, companies are also waking up to the idea of cyber insurance to protect themselves against attacks on the Internet.
On the other side of the Atlantic, where companies are obliged to inform US authorities of online attacks, the cyber insurance market is already highly developed, totaling US$1.3 billion (960 million euros) per year, according to Christopher Lohmann, head of Germany and Central Europe at Allianz Global Corporate and Specialty.

Lohmann emphasizes that the cyber insurance may well grow to 700-900 million euros by 2018.

COMMENT: Countless companies have easily seen their cyber infrastructure paralyzed in recent years and often infected with viruses and malware.

Just last month, mobile phone operator, Vodafone, was the victim of massive data theft where personal information, including bank account details, of around two million people was stolen, causing claims and lawsuits.

In Germany, a total 64,000 acts of cyber crime were officially reported in 2012, representing around 42 million euros worth of damage, an increase of 7.5% over the previous year.

New legislation will come into effect in Europe very soon, requiring companies to report cyber attacks and abide by tougher data protection controls. And that will boost demand for cyber insurance, experts say.

According to software maker Norton BSE, roughly 556 million people were the victims of cyber crime in 2012, with the losses estimated at 80 billion euros.