While companies are aware of cyber insurance, uptake it being held back by a number of deployment challenges, according to Radiant Insights.
In an assessment of the growth of the cyber insurance industry over the next ten years, Radiant noted that small enterprises find it easier to adhere to data policies designed to protect their data. Meanwhile large enterprises have access to emerging cyber insurance products and can afford custom-made insurance solutions.
However, Radiant said medium-sized organisations are caught in the middle and face a particular challenge. Digital transformation affects all parts of a business, but management often find it difficult to get a holistic picture of overall cyber risk arising from all parts of the business, Radiant added.
The growing volume of data, and increasingly complex network clusters, risk creating loopholes in the network system that increase the risk of cyber attacks, Radiant warned. This will ensure the cyber insurance market will continue to grow as companies conduct an increasing share of their business digitally, it said.
The rise in incidences of data theft, breach and cyberattacks will encourage more companies to seek cyber insurance. Internet insurance and data protection solutions are viable strategies for combating cyber attacks, Radiant noted, with risk transfer expected to emerge as another possible solution.
However, “low standardisation, high pricing and fierce competition is more likely to limit the [cyber insurance] market growth,” it added.
Cyber, Radiant Insights