27 May
2020
The cyber insurance market has experienced a boom in the recent years. The threats in the cyber world are increasing, which in turn, led to an increase in the demand for cyber insurance products. Market leaders are targeting several market segments to increase their market shares. Companies such as Willis Tower Watson are customising products for its customers. FireEye recently collaborated with several companies to improve efficiency of its product. According to the report published by Allied Market Research, the global cyber insurance market is expected to reach $28.60 billion by 2026. Market players are developing certain strategies to increase its market share. The trends followed by the companies are as follows.
Companies are planning to target several market segments by introducing its products specifically for a particular sector. Axon Underwriting Solution developed a product especially for small to medium-size enterprises (SME). The cyber liability program responds to client breach and ransomware incidents. It provides response service, defence cost, data recovery, business interruption, and credit monitoring coverage. Cowbell Cyber Inc. announced that it is launching Cowbell Prime 100. This cyber insurance product is the only product in California. The product uses data and artificial intelligence to allow users continually assess cyber risks. Coverages offered by the insurance products are security breach liability, security breach expense, business income, cyber extortion, and social engineering.
Market players are developing customized products for their customers. They are customizing according to the demand and need of the customers. Willis Towers Watson, a cyber-insurance solution company, launched CyNav for ship operators. The primary focus of the product is to support the continuity of maritime businesses and resume operations as soon as possible after a cyber-incident. CyNav solutions are developed by cyber and maritime experts. The product addresses the coverage gaps found between standard hull & machinery (H&M) and cyber policies. It ensures that the owner pays for the protection they need. The compensation for cyber-related business interruptions includes loss of gross profit and increased working cost, including payments on account to help with cash flow.
Market leaders are collaborating with several companies to make their offering different and better than the competitors. They are trying to provide a quality product for the customers. FireEye, a cyber-risk insurance company had researched and found out that it needs assistance to find and halt advanced attacks. The company is planning to work with insurers to limit exposure. The company teamed up with several brokers such as – Lockton, Marsh, and Woodruff-Sawyer to help clients determine what coverage is appropriate for them. FireEye also partnered with underwriters to develop a product to its policyholders that will reduce risk upfront and protect the clients from greater loss. This strategy will give the company a leading edge as the company will deliver a better product than before.
The growing risk of cyberattacks has increased the sale of cyber insurance among new industries. Industries such as technology and financial institutions are the major buyers of the insurance. This is due to the growing threat of cybercrime in these industries. This has led to increase in competition among market players.
Rosy Behera
Author's Bio- Rosy Behera holds a bachelor’s degree in Electrical and Electronics Engineering and now she is a content writer by profession. She loves to portray her thoughts and ideas with a nice command of words. Grabbing an audience with her creative write-ups is one of her biggest assets so far. Apart from writing, she is a certified “Odisi” dancer and has done Gardharva in Drawing, Painting, and Arts. She always explores new things through travel and is a big foodie.
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