With more than $400 million paid out in cyber liability insurance claims in 2014, one might think that cyber insurance is not a profitable sector of the industry. However, Graeme Newman, director at CFC Underwriting, explains that “the interest in cyber is phenomenal right now. It’s never been hotter.” For a product line that has been around for only 15 years, Newman claims the cyber insurance industry is seeing more buyers and more market participants.
Certainly, underwriting and pricing adjustments will be made as the cyber market evolves. But according to this article, we will see cyber insurance expand from the health and financial industries to more non-traditional ones such as mining, manufacturing, transportation, and energy. Furthermore, coverage is predicted to grow beyond just privacy breach response: “Now we’re seeing products develop around the business interruption components, the system damage elements, and that makes the product so much more appealing to a much, much wider spread of customers.”