Threat of breaches increases demand for cyber insurance
New European legislation on data privacy and high-profile data breaches are increasing demand for cyber insurance in the UK, according to industry specialists.
The U.S. cyber insurance market has also seen growth this year, by more than a third. Gross written premiums totaled $2.75 billion, says The Betterley Report, a survey of the cyber insurance market.
Globally, the cyber insurance market could reach $7.5 billion by the end of the decade, according to a report by PwC.
Until now, insurers say many European companies have shown little interest in cyber insurance. But after TalkTalk and Experian were affected by hackers earlier this year, and the European Union agreed last week on a new privacy bill that will force companies to report breaches to national authorities within 72 hours, demand has grown.
Most U.S. states have also introduced legislation requiring companies to notify individuals of security breaches of personal information. Before that, almost no cyber insurance was written in the U.S.
"We have seen clients buying policies because they know that this is coming," said Paul Bantick, technology, media & business services UK focus group leader at insurer Beazley. "Breaches are going to get more expensive, they are going to get more complex and they (clients) want insurers to help with both of those issues."