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Insurance opportunity in wake of WannaCry

The recent global ransomware attack has highlighted the important role of the insurance industry in mitigating cyberattacks. Managing Director Ian Pollard spoke to Nerine Zoio from Insurance Business:

“Ransomware attacks comprised 40% of our company’s insured cyber claims over the last 12 months. 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,” he said. “The global cyber insurance market will increase tenfold within the next eight years from US$3.5 billion to potentially US$25 billion by 2025. The cost of cybercrime will also grow from US$3 trillion in 2015 to US$6 trillion in 2021.

“Sophisticated cyber insurers are conscientious around understanding accumulations for various cyber disaster scenarios and there are some potential risk scenarios that could have very severe and wide-ranging consequences.

“Examples of these include a major cloud provider outage, global malware or ransomware contagion similar to the recent Wannacry event and a global cyber terrorist incident. Any of these events could be truly global in nature and are perhaps the more concerning incidents being silent cyber scenarios exposing non-cyber insurance products to potential cyber-related losses.”

Pollard emphasised that ransomware attacks aren’t going away. “New Zealand has had hundreds of ransomware attacks this year and we expect more.”

For the full story, read Insurance Business article 

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