Cybercrime in insurance

The value of claims related directly or indirectly to cyber incidents is increasing rapidly and already having an impact on the profitability of your existing policies. Because your customers are likely to suffer harder and more often from this risk, demand for cyber insurance will increase and thus offer huge commercial opportunities for (re-)insurers. However, because this is a relatively new type of insurance, unlimited cover could potentially result in massive losses. Therefore, when agreeing such contracts, it is important to consider (exclusion) conditions and effectively estimate the net frequency and impact of potential damage-related risks (bearing in mind control measures your customers may or may not have taken).

At the same time, insurers must also continue to invest in their own cyber security: companies that cannot protect themselves cannot expect customers to trust them for protection and advice. Considering the vast amount of personal, financial and other sensitive information possessed by insurers, it is thus important for you to also take appropriate security measures and closely monitor your cyber risks.

Cyber-crime is a unique risk

Due to the digital revolution, data in today's society is increasingly inter-twined. However, this means we are becoming increasingly vulnerable to a wide range of cyber criminality. Cyber criminality is so complex because it is not only difficult to recognise and combat, but it is also difficult to determine its potential damage. What, for example, can you do about reputation-related damage?

Only a limited number of companies in the Dutch market offer cyber insurance. Current providers are characterised by high premiums and maximum payouts to customers. Such characteristics are typical of a young market, with many opportunities for new players.

How PwC can help you:

Offer support when developing a go-to market strategy, e.g. identifying the various types of cyber risks you want to insure and the market sectors you want to focus on.
Provide assistance when developing products and setting premiums for cyber insurance.
We can help you to establish a framework for cyber security in order to reduce cyber risks for your organisation and that of your customers.
If you are the victim of a cyber attack, PwC can help you to limit the consequences.

More interesting information about the need for and potential of cyber insurance.