Insurers need to identify specific triggers for cyber claims: report

INSURERS and reinsurers need to identify the specific triggers for cyber insurance claims in order to offer more attractive prices, conditions and exclusions to potential customers who make up a largely untapped market, said a PwC report.

The report, Insurance 2020 & Beyond: Reaping the Dividends of Cyber Resilience, said the uncertainty as to how much to put aside for potential losses, coupled with the limited number of insurers offering such coverage, has contributed to high cyber insurance premiums.

The cost of cyber insurance relative to the limit purchased is typically three times the cost of cover for more established general liability risks, PwC noted, adding that many insurers also set limits below the levels sought by their clients - "the maximum is US$500 million, though most large companies have difficulty securing more than US$300 million".