Demand for cyber insurance likely to increase as a result of WannaCry attack
Source: Asia Insurance Review | Jun 2017
The slew of the mid-May ransomware attacks in over 150 countries revealed the widening scope of corporations’ cyber risk exposures, which is likely to increase demand for related insurance protection, Fitch Ratings said.
Currently, nearly nine out of 10 cyber insurance policies in the world are in the United States, according to Mr Kevin Kalinich, global head of Aon Plc’s cyber risk practice, which means most of the rest of the world are not c
overed. Annual premium market stands at US$2.5-3 billion, cited Reuters.
Mr Ben Beeson, Washington-based cyber risk practice leader at Lockton Cos. L.L.C., told Business Insurance that losses from WannaCry ransomware attacks will be limited as the ransomware is largely hitting organisations in Europe and Asia, where fewer companies buy cyber insurance.
As at press time, Munich Re was also quoted to say that the fallout of the WannaCry ransomware cyber attack is manageable for the global insurance industry.
Many industry observers concurred that this attack will create a lot of interest for cyber insurance. A