2016 Could be the Year of Cyber Insurance

H/T to RiskAnalytics for the link to this interesting analysis of the growing cyber-risk insurance market on CIO Dive:

A fast-growing market

Currently, first-party insurance products cover losses associated with data destruction, denial of service attacks, theft and extortion. In addition, some insurers also cover incident response and remediation, crisis management, forensic investigations, data restoration and business interruption.

Both sides of the cybersecurity insurance market—businesses seeking policies and the insurance companies that sell them—are expanding rapidly, according to David Burg, global and U.S. cybersecurity leader at PwC. In fact, cybersecurity insurance is one of the fastest-growing sectors in the insurance industry.

“In part, this is because businesses understand that they can’t stop increasingly frequent and sophisticated cyberattacks, so they are purchasing insurance as a way to help mitigate the financial impact,” said Burg. “Many see cybersecurity insurance as a new tool to help manage corporate risks.”

A report last year from PwC forecast that the global cybersecurity insurance market will hit $7.5 billion in annual sales by 2020, up from $2.5 billion in 2015. And more companies appear to be buying cyber insurance.

PwC’s annual Global State of Information Security Survey showed solid year-over-year growth in the number of companies that purchased cybersecurity insurance. In 2015, for instance, 59% of global respondents said they had cybersecurity insurance—up from 45% just two years ago.

Full article at: http://www.ciodive.com/news/2016-could-be-the-year-of-cyber-insurance/415328/

By |2016-03-18T00:40:35+00:00March 18th, 2016|Tags: |0 Comments

About the Author:

Brian Ray
Professor Brian Ray has extensive experience in eDiscovery, information governance and data privacy. He and Candice Hoke created and serve as Co-Directors of the Center for Cybersecurity and Data Privacy at Cleveland-Marshall College of Law, where they are Professors of Law. Brian co-founded, with Tim Opsitnick of Jurinnov, the Cleveland eDiscovery Roundtable, an informal group of lawyers, judges and academics that meets monthly to discuss issues surrounding electronic discovery, cybersecurity and data privacy issues. Professor Ray is a member of the Sedona Conference's International Electronic Information Management, Discovery and Disclosure and Data Security and Privacy Liability Working Groups. Professor Ray also is an expert in international and comparative law. His book, Engaging with Social Rights: Participation, Procedure and Democracy in South Africa's Second-Wave (forthcoming Cambridge 2016) provides a comprehensive analysis of the South African Constitutional Court's social rights decisions. He has served as a Fulbright Scholar in South Africa and has published extensively on the law of human rights.

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