It explains that the cyber insurance market is rapidly growing, driven by an ever-increasing number of cyberattacks. According to Munich Re, from 2019 to 2023 the global cyber insurance market was worth an estimated $5.9bn and grew to $14bn. Despite this growth, the publication notes that a significant cyber protection gap exists, with underinsurance remaining a critical issue for both businesses and individuals. The publication also shares case studies from across Europe, showcasing initiatives that aim to strengthen cyber resilience.
In addition to providing an overview of the cyber insurance landscape, the publication identifies five key challenges that complicate the quantification and assessment of cyber risks:
1. Uncertainty surrounding potential future losses.
2. Highly correlated risks due to the widespread use of common operating systems.
3. Limited data availability on cyber incidents and associated losses.
4. The increasingly intangible nature of cyber losses.
5. Systemic risks posed by catastrophic cyber events.
To address these issues, the publication sets out several policy recommendations for EU policymakers, which could support the insurance industry in strengthening cyber resilience across Europe:
• Promoting awareness-raising of cyber resilience
• Facilitate access to comprehensive data on cyber incidents for insurers.
• Support the discussion on public-private cooperation to address catastrophic risks.
• Avoid mandatory insurance schemes or overly rigid standardisation.
• Recommend avoiding ransomware payments
Read the full online publication here
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