Insurance firms eye cyber attacks for growth

Allianz' HirsA report from Allianz said that with cyber crime costing as much as $445 billion, the market for cyber insurance is set to grow too.

Allianz said that less than 10 percent of companies buy cyber specific poilicies but cyber assurance premiums will grow from $2 billion a year now to $20 billion over the next 10 years.

Cyber insurance, according to Allianz division CEO Chris Fischer Hirs, “is no replacement for robust IT security, but it creates a second line of defence to mitigate cyber incidents”.

Future threats, Allianz said, are likely to be from intellectual property theft, cyber extortion and business interruption.

Insurance cover can include business IT computer system, but also industrial control systems and robotics.

The internet of things will create further risks, Allianz believes and by 2020 it’s thought 50 billion machines will exchange data daily.