Three major nonlife insurance companies saw sales of cyberattack policies more than triple to over 1,000 clients combined in the financial year ended March 2017 (FY2016).
Demand for cyberattack insurance, which covers losses caused by damaged computer systems, is surging as cybersecurity concerns spread to small and midsize firms, reported Kyodo News Agency.
The Japan Network Security Association said the cyberattack insurance market is expected to grow to JPY15.6 billion in the year ending next March. Nonlife insurers saw interest swell after a ransomware attack struck companies in at least 150 countries in mid-May, the Tokyo-based association said.
Tokio Marine & Nichido Fire Insurance, which in February 2015 became the first Japanese insurer to launch a financial product for cyberattacks, saw new policyholders leap around threefold in FY2016.
The company provides consulting services for those worried about malware infections and provides cost estimates for potential cyberattacks.
Sompo Japan Nipponkoa Insurance released a product last October for small and midsize companies that charges relatively low premiums. New contracts for its cyberattack insurance products jumped fivefold in the six months to March compared with the same period a year ago.
MS&AD Insurance Group Holdings saw cyberattack insurance contracts surge about 3.7 times in FY2016. It instructs customers, mainly employees at small and midsize companies, on how to prevent targeted attacks sent by electronic mail.