Following WannaCry ransomware attack worldwide, there is a scramble among IT companies and governments maintaining huge data cover from future cyber...
Following WannaCry ransomware attack worldwide, there is a scramble among IT companies and governments maintaining huge data cover from future cyber attacks. The market generates about $3bn-$4bn in premiums annually, but Allianz expects it to reach $20bn by 2025, making it one of the fastest growing segments of the industry, according to Financial Times.
Cyber insurance can be expensive to buy and is not widely used outside the U.S., with one insurer previously describing the cost as $100,000 for $10 million in data breach insurance. The kidnap policies, known as K&R coverage, are typically used by multinational companies looking to protect their staff in areas where violence related to oil and mining operations is common, such as parts of Africa and Latin America, reports Reuters.
Cyber and privacy insurance is type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network.
The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft. In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion. Cyber and privacy insurance is often confused with technology errors and omissions (tech E&O) insurance.
In contrast to cyber and privacy insurance, tech E&O coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis. Nevertheless, tech E&O insurance policies do contain a number of the same insuring agreements as cyber and privacy policies. (www.irmi.com)