The global cyber insurance market could increase to $5 billion by the end of 2018, according to the new report of PwC. Pricewaterhouse Coopers (PwC) offers audit, assurance, consulting and tax services to private and government firms in the world.
The global cyber insurance industry is expected to grow to $7.5 billion by the end of 2020. Over the last few years, there has been a rise in cyber attacks throughout the world. In 2014-15, India was the second most cyber heavily attacked nation, second only to United States.
PwC has released the report titled "Insurance 2020 & Beyond: Reaping the Dividends of Cyber Resilience'. According to the report, 61% of business leaders across all industries consider cyber attacks as one of the major deterrents to their business growth. Further stated in the report, 71% of insurance CEOs and 79% of banking CEOs throughout the world perceive cyber attack as a threat. It was ranked higher than shifts in consumer behaviors and supply chain disruption.
As stated in The Economics Times, Mr. Anuraag Sunder, Director, PwC India, said, "Cyber Insurance remains a looming risk with steep under penetration in India. Anecdotal data suggests that the number of cyber policies sold would be in the vicinity of 150 or so. As ITeS, retail, healthcare and related sectors grow cyber insurance for suitable customer data protection become crucial."
According to Mr. Paul Delbridge, Insurance Partner at PwC, "Insurers also need to continue to invest appropriately in their own cyber security - a business which can't protect itself can't expect policyholders to trust them to protect and advise them. Given the huge volume of medical, financial and other sensitive information they hold, it is critical that insurers have closely monitored, highly effective cyber security frameworks in place."