When cyber insurance is worthwhile and what risks you have to bear yourself - a financial expert provides insight

When cyber insurance is worthwhile and what risks you have to bear yourself - a financial expert provides insight

According to a report by www.luzernerzeitung.ch,
Attacks from the Internet on companies, authorities and private individuals cause enormous financial damage. The US market research company Cybersecurity Ventures estimates that this will be around $8,000 billion worldwide this year, or up to eight percent of global economic output. Less than one in ten Swiss companies is insured against cyber damage, even though an attack can threaten its existence.

The increasing number of cyber attacks on companies, authorities and private individuals has led to rapid growth in the cyber insurance market. More and more companies and people are recognizing the need to protect themselves against this type of damage. The industry is therefore experiencing a real gold rush atmosphere.

However, cyber insurance comes with risks that are difficult to calculate. In recent years they have often been a losing proposition for insurance companies. The dynamic and complex nature of cyberattacks and damage makes accurate risk assessment and protection difficult.

A current estimate suggests that up to 8 percent of global economic output is at risk from cyber attacks. This underlines the urgent need for adequate protection against cyber damage, for both companies and private individuals. The increasing demand for cyber insurance is therefore a direct response to the threat and extent of financial damage caused by cyber attacks. It remains to be seen how the insurance industry will innovate and develop new approaches to keep pace with growing risks and increasing demand.