Cyber cover will become a must buy for all businesses, one global head has said – with brokers set to play a “huge” role in the development of the product.
Inga Beale, CEO of Lloyd’s,
told Insurance Business
that cyber insurance will become a must-have for all manner of businesses as the risk landscape continues to shift.
“I think cyber insurance is going to be one of those must-buys because there are only two types of businesses: businesses that know they have been hacked and businesses that don’t know that they have been hacked,” Beale said.
“The use of technology means that the risk of cyber attack is going to be one of the key risks that all businesses face and really they are going to be buying insurance to protect themselves against it like they do the other perils.
“I do believe cyber insurance is going to be a standard product offering before too long and I think the insurance industry, certainly from a Lloyd’s perspective, is keeping up.”
A joint Lloyd’s and Cambridge University study has found that Singapore’s GDP ranks 19th in the world in terms of risk of cyber attacks, with US$3.41 billion at risk. Elsewhere in the Asia Pacific region, Osaka ranks 6th with US$7.57 billion at risk, Tokyo at 9th with US$6.09 billion at risk and Taipei at 11th with US$5.14 billion at risk.
Beale stressed that mandatory breach legislation has been a key driver for the growth of cyber insurance in other parts of the world, and with signs pointing to a similar outcome throughout the Asia Pacific market, the cyber insurance market is set to grow further.
“Businesses aren’t necessarily still being complacent but I don’t think it is necessarily at the right level in the boardroom yet,” Beale continued.
“What we have seen elsewhere in the world is as soon as you’ve got some regulation out there, a requirement for businesses to report breaches when there is a loss of personal data, that is one of the key drivers for elevating the risk up to the boardroom.”
Lloyd’s of London to help the Philippines' poorest homes
Inga Beale: Diversity needed to future-proof the industry