Cyber insurance market hobbled by lack of data, experience, clarity

Singapore

THE risk of cyber attacks against companies grows by the day.

But cyber insurance is not evolving as rapidly, hamstrung by profound questions about insurability, limited actuarial data on the financial impact of cyber attacks, and insurers' concern over the limits of their liability.

A 2018 paper by Geneva Association (GA) puts the size of the cyber insurance market at about US$3 billion a year, mostly in the United States.

More insurers are jumping in, which suggests pricing is becoming more competitive.

But GA raises concerns about profitability, given the dynamic and evolving nature of the risks.

"The attractiveness of the market is clearly shown by the number of insurance companies that are continuously entering the market with new products... The main reason for this trend is that the…