Cyber insurance set to rise

It’s not just celebrities who are affected by the growth of cyber space. A leading underwriting agency has predicted that the risk of cyber-related crime is growing to such an extent that it will soon overtake more conventional business risks.

High-profile cyber-related crime and scandal have been hitting the headlines recently. The most notable have been the Twitter super-injunction cases and Sony Playstation data hackings, which have both highlighted the rising risks for companies over publishing and storing information.

 Underwriting agency CFC has predicted that, as a consequence, cyber insurance is going to rise, but that more should be done to make policyholders aware of the risks they face. According to a CFC spokesperson quoted in Post magazine, “Why do less than five per cent of policies cover loss through cyber crime? Some insurance policy wordings have remained the same for decades. We need to make these issues easier for clients to understand…..I believe that in two or three years, these risks will be worth more than D&O and P&L combined.”