Cyber insurance premiums, which now amount to about $ 5 billion annually, will increase by 20% to 30% per year on average in the near future, says Standard & Poor & # 39 ;s Corp. in a report.
Small and medium-sized enterprises, "which have a significant untapped demand for cyber insurance," will be a major growth path, according to the report released on Wednesday.
"The growth rate of cyber insurance for SMEs (in the US) was more than twice as high as for other industries segments 2018 and 2019, the report says." In our view, this is an important development that will gradually improve the risk diversification of the insurance companies' & # 39; exposure. ”
The report states that the risk of accumulation is an important challenge for insurers as the accumulation of damages can expose an insurance company to large financial losses.
"In addition, it is more difficult to calculate the appropriate price for cyber insurance than other industries, given the dynamic nature of cyber risk and the increased sophistication of cybercrime," the report said.
"We also see a lack of transparency and rigidity from the Insurance market, which does not fully meet customer requirements," the report says.
This includes "uncertainty about coverage elements, given a uniform definition of cyber risk and inconsistent terms, as cyber is often is bound by liability or
"In some cases, we also see exceptions for certain industries, such as critical infrastructure or financial service companies and certain allegations, including false presidential fraud (where criminals imitate business leaders and order a bank transfer in emergencies) or cyberbullying.