Risks related to cyber attacks represent challenges for insurers but also opportunities. This is the third report of our series on cyber threats that began in December 2020. The first report, Cyber Threats and Insurance: The Two Sides of the Coin, introduced the cyber threat topic and provided a view on the challenges posed by cyber risks—including internal business protection against cyber attacks as well as opportunities cyber risks represent for insurers. The second report, Insurers Fight Against Cyber Threats: Preparing for a Long-Lasting War, provided insights on insurers’ recent experience around cyber attacks as well as CIO plans for protecting their internal operations.
Cybersecurity risk management is made up of a vast array of technology and services. An insurer offering cyber insurance must underwrite and then administer the product. They may also offer services to augment the insurance, which may be provided by a third party. Businesses may opt to buy these additional services and technology on their own, but in either case they need to think of cyber insurance from an ecosystem perspective.
In this report, we take a more in-depth look at the new opportunities cyber threats generate for insurers. We start with a definition of cyber events and cyber insurance before going deeper on clients’ awareness of cyber insurance products. This report also describes the recent evolution of the cyber insurance market and identifies its main drivers. Finally, we provide a high-level view on technology elements and players that insurers should be aware of when building a cyber insurance technology ecosystem.