As the world becomes more connected, cyber risk appears as a bigger threat on the digital transformation journey of insurance companies.
As the world becomes more connected — with billions of sensors, connected machines, totally digital processes, trillion terabyte of new data and strict regulations on data privacy — cyber risk appears as a bigger threat on the digital transformation journey of insurance companies. Cyber risk was always there, and companies managed it without detailed policies or billion dollar covers. But, the situation is changing dramatically. In our century, managing cyber risk is a full-time job and requires big budgets. Gross written premium in 2017 for cyber risk policies was nearly $3.1 billion, and it is expected to reach $14 billion just in five years. Insurance professionals expect rapid growth because cyber risk is now threatening not just financial statements but also the existence of companies from every business.