The New Zealand cyber insurance market in time may reach NZ$500 million (US$353 million) in premiums, according to Mr Ian Pollard, director of Delta Insurance.
Delta is New Zealand’s only locally owned and operated specialist underwriting agency specialising in areas such as cyber, technology, environmental and UAV insurance cover.
However, currently, barely 5% of New Zealand companies have taken out cyber insurance, despite a predicted rise in ransomware and other cyber issues, the agency says.
A Symantec report says New Zealand has the second highest number of ransomware attacks in the southern hemisphere (21st globally) and more than 50% of Delta Insurance’s cyber insurance claims all up have been related to ransomware
Latest estimates reveal that cybercrime costs US$3 trillion globally and between NZ$250 million and NZ$500 million in New Zealand.
Mr Pollard said: “I predict the number of cyber insurers will double over the next two years (from eight to 16) and peak in 2018, making it the best time for New Zealand businesses to buy cyber insurance.”