Lloyd’s CEO Inga Beale sees cyber insurance as a new frontier for Lloyd’s, especially considering the growth of the industry in the last few years. According to Beale, “last year, the insurance industry took in $2.5 billion in premiums on policies to protect companies from losses resulting from hacks. That was up from around $2 billion a year before, and less than $1 billion two years before that.”
Beale says that much of the $400 billion a year lost to cyberattacks is due to “the damage itself and subsequent disruption to the normal course of business.” Although she is not aware of exactly how much cyber insurance firms are buying she believes that it is only a fraction of what companies are losing to hacks. Furthermore, she has found that it is “usually the firms that are best prepared for cyber attacks that wind up buying insurance,” and the majority of these are based in the US, leaving other companies around the world exposed. Fortune has the full interview with Beale.