Yemisi Izuora
Research report released by Allied Market Research has predicted that global cyber insurance market would reach $14 billion by 2022.
However, the National Association of Insurance Commissioners in a statement expressed concern on the difficulty in writing cyber coverage.
The said, Cyber risk remains difficult for insurance underwriters to quantify due, in large part, to a lack of actuarial data.
Insurers compensate by relying on qualitative assessments of an applicant’s risk management procedures and risk culture.
“As a result, policies for cyber risk are more customized than other risk insurers take on, and, therefore, more costly.
The type of business operation will dictate the type and cost of cyber liability coverage. The size and scope of the business will play a role in coverage needs and pricing, as will the number of customers, the presence on the Web, the type of data collected and stored, and other factors.”
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Cyber insurance policy premiums are not one size fits all, as premiums are factored on a company’s industry, services, type of sensitive data stored, collected, processed and the total number of records, data risks and exposures, computer and network security, privacy policies and procedures, among others.