How Insurtechs Can Unlock The Opportunity
Cyber risk is not just a wholly digital risk – it spills over into the physical world of tangible assets as well, e.g. hacking into a fire protection sprinkler system could lead to flooding and damage to physical property.
An integrated view of cyber is critical to fully address the range of risks that it can give rise to.
Cyber risk is a bridge between tangible and intangible assets, which leaves organisations exposed to a much wider scale of damage, which is not often adequately insured since Cyber Insurance has historically been focused on digital assets, such as client’s personal data or transactional data.
The increase in cyber attacks along with its wider impact has led insurers clients and insurers to rethink the knock-on effect on other insurance lines like personal (reputation), property (physical damage), intellectual property (competitor information) etc.
The unfolding of Cyber Insurance developments from a single focus on digital to encompassing other asset classes is a nascent one, with current insurers struggling to use traditional methods to model these risks, especially in the light of minimal, and unrepresentative, data.
Those who do, will be well positioned to grab significant share of what is growing market.