For companies and organizations, an attack by hackers can inflict financial losses, corporate embarrassment and legal action.
For insurers jumping into the brave new world of cyber crime insurance, it’s free marketing for what could be a $10 billion opportunity.
High-profile computer breaches like the hack of the Democratic National Committee and the Twitter Swastika Hack are reinforcing the need for protection against cyber threats, and companies such as Allianz SE and Beazley Plc are eager to step in. Insurers see coverage against hackers as one of their most promising markets, estimating that premiums will triple over the next four years.
“We are optimistic that it can develop into Allianz’s and the industry’s next blockbuster,” Hartmut Mai, chief underwriting officer for corporate lines at Allianz’s industrial insurance arm, said in an interview. “Cyber insurance is our key growth area at the moment.”
A new breed of coverage couldn’t come at a better