A panel at the Insurance Risk & Finance Research Conference in Singapore this week discussed the cyber risk insurance market, touching on the immature pricing and limited capacity across sectors and lines of business.
Geetha Kangasingam, VP of Risk at Barclays Bank PLC, said, “Capacity is still an issue. Cyber coverage currently purchased within the financial industry hovers around the limits of between $200-250 million based on the availability of capacity, which is relatively low compared with the potential losses that banks may suffer from a cyber event. There are also a number of exclusions and uninsured elements such as intellectual property, infrastructure and reputational loss.”
This burgeoning market also presents many opportunities, according to panelists, including the possibility of partnerships between IT companies and insurers for pricing and risk management; IT specialists helping with cyber risk underwriting; and an enhanced role for data analytics.