On 2 August 2018, EIOPA published a report on understanding cyber insurance.
The report is based on responses of 13 (re)insurance groups based in Switzerland, France, Italy, Germany and the UK to a set of 14 qualitative questions. The sample was selected based on expertise and current exposures in cyber insurance and consists of eight insurers and five reinsurers.
The key findings of the report include:
- there is a clear need for a deeper understanding of cyber risk, both on the supply and demand side in order for the European cyber insurance industry to develop further;
- cyber insurance products and services are mainly focused on commercial business. However, there is increasing interest in providing cyber insurance for individuals;
- the cyber insurance industry expects a gradual increase in the demand for cyber insurance, mainly driven by new regulations, increased awareness of risks and by a higher frequency of cyber events. The relevance and importance of cyber coverage in the overall functioning of the economy is expected to increase significantly;
- lack of specialised underwriters, data and quantitative tools are key obstacles to the development of the industry and the provision of proper coverage to the economy;
- regulation may be welcomed by the industry in a moderate fashion, as it could help to address some of the identified challenges.