Cyber Insurance Market Outlook
White Paper Summary
It is difficult to achieve comparability of products in the cyber market, as many players —be they insurance companies or brokers — draft their own wordings with a specific focus on property or casualty components. As cyber technology is omnipresent and the risks can trigger claims under traditional insurance products, some players choose to endorse their traditional property or casualty policies with cyber extensions. Overall, however, new stand‑alone cyber covers are appearing.
The accumulation potential of cyber risks is not fully understood. Firstly, a single cyber event can trigger a multitude of stand-alone cyber policies, due to the fact that contingent business interruption is a common feature of cyber policies, but also because everything is interconnected. The rise of the Internet of Things will increase connectivity and so trigger even more potential losses.
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