Cyber insurance: needed but not trusted
Two separate reports released this week show an interesting challenge for the insurance industry regarding cyber policies. The first is from the Association of British Insurers which says that within the next ten years the purchase of cyber insurance policies should be as common among businesses as property insurance. Huw Evans the ABI’s director general will tell a conference today: "Cyber risk is growing rapidly. At the moment, despite more than 80 per cent of large businesses suffering a cyber security breach in a 12 month period, only around 10 per cent have any form of cyber insurance.”
However a new report from KPMG shows that one of the main barriers to purchasing cyber coverage is trust. Senior information security professions who are members of the firm’s International Information Integrity Institute revealed in a survey that they are not convinced that their insurer would pay out in the event of a claim. Seventy-four per cent of those surveyed stated their businesses had no cyber insurance in place although 79 per cent believe that cyber security threats are likely to increase over the next twelve months. For those whose businesses have purchased cyber insurance, 48 per cent think that the policies may not pay out if they need it. The head of the institute Mark Waghorn commented: “Of the information security professionals we spoke to 30 per cent believed the market for cyber insurance does not appear to be sufficiently mature yet. Insurers will need to deliver more comprehensive packages in order to convince the business community that they can and will protect against losses on cybercrime.”
Auto insurance board hit with lawsuit over questionnaire
The SAAQ, Quebec’s auto-insurance board, has been hit with a class-action lawsuit over a questionnaire. The allegation is that a document used to assess the risk of impaired drivers re-offending was discriminatory. The action in the Quebec Superior Court could lead to millions of dollars in compensation being paid to thousands of drivers if the court finds in favor of the plaintiffs. Among the key issues are that some of the questions on the document were not deemed to be pertinent to the process of assessing the risk. According to The Huffington Post the SAAQ has not commented other than to say that the questionnaire was prepared by professionals with the intention of lowering risk on the province’s roads. The case is expected to be in the courts for a lengthy period.
Sun Life may increase its stake in Indian insurance venture
Sun Life Canada may increase its stake in Indian venture Birla Sun Life following a decision by the country’s government to increase the level of allowing foreign direct investment. The limit has been 26 per cent but not foreign firms will be able to own up to 49 per cent of a joint venture in India. Sun Life’s head in India Sandeep Asthana told the Indian Times that the firm is evaluating its options: "India is a huge market with an immense potential and we are excited to be a part of the growth of the industry.”
