General Insurance Article - Personal cyber insurance may become a necessity

 Recent months have seen numerous events that have increased the general public’s awareness of cyber-attacks – most notably the Equifax hack, which involved the personal details of nearly 700,000 UK customers, and the finding that all Wi-Fi connections can be hacked due to flaws in universally used security protocol, previously thought to be secure.

 Daniel Pearce, Financial Analyst at GlobalData, comments: “Such developments could lead to personal cyber insurance policies becoming a necessity in the coming years”

 These types of products are currently available via AIG and Hiscox, both of which provide protection for high net worth (HNW) individuals against a variety of cyber-attacks. In the US, protection is available from Hartford Steam Boiler Inspection and Insurance Company, part of Munich Re. Additionally, Oak Underwriting recently announced that it will include cover for cyber-crime within its legal expenses and home emergency cover, through a partnership with Das.

 Pearce explains: “The cover will aim to provide HNW customers with support by investigating and rectifying any damage caused to their device, locating and removing viruses, as well as providing professional consultation in order to prevent future cyber-attacks. In addition customers can upgrade to a more comprehensive policy with a limit of £100,000, which will also insure payments liable as a result of an attack, misuse of personal data, and ransomware.”

 Although such products will initially only be offered as add-ons, the potential to offer cyber insurance as a standalone policy is likely to emerge over time, once the market develops and uptake increases.

 Pearce also notes: “There is also potential for such policies to be purchased alongside new gadgets, allowing for premium prices to be more specific and reflect the level of risk posed by each gadget.”