Europe's biggest insurer Allianz is expecting to cash in on growing
corporate demand for insurance against computer hacking and Internet
breakdowns, it said yesterday.
"We see cyber insurance as a big growth market," said Hartmut Mai, board member at Allianz's AGCS unit for global corporate and special insurance risks.
Insuring against cyber threats is seen as a potentially lucrative market for Europe's insurers, particularly now that lawmakers are promising bigger fines for companies that lose data.
"If my production lines are silent because my cloud [computing] provider cannot make the data I have stored there available, then that could threaten the company's existence," Mai told a press briefing.
While cyber insurance products in the US are already well developed, generating premiums of around $1.3 billion per year, they are drawing premiums of only around €150 million in continental Europe, including between €50 million and €70 million in Germany, Mai said.
That leaves room for the market outside the United States to grow by double-digit rates.
"We see the overall market in Europe at between €700 million and €900 million in 2018," Mai said, adding that Allianz aimed to grow with the market and hold a share of around a fifth.
Allianz has brought several types of risk cover, including some existing insurance products, into a single package for its cyber offering, which it expects will be of interest to telecoms companies, software houses, online retailers and banks.
Annual premiums would range from roughly €50 000 to €90 000 and would offer between €10 million and €50 million of protection, Mai said. The insurer is rolling out the package in western Europe, Australia and New Zealand this year, and will target several Asian countries in 2014. It does not plan to offer it to US-based customers, where the liability rules make the market
"We see cyber insurance as a big growth market," said Hartmut Mai, board member at Allianz's AGCS unit for global corporate and special insurance risks.
Insuring against cyber threats is seen as a potentially lucrative market for Europe's insurers, particularly now that lawmakers are promising bigger fines for companies that lose data.
"If my production lines are silent because my cloud [computing] provider cannot make the data I have stored there available, then that could threaten the company's existence," Mai told a press briefing.
While cyber insurance products in the US are already well developed, generating premiums of around $1.3 billion per year, they are drawing premiums of only around €150 million in continental Europe, including between €50 million and €70 million in Germany, Mai said.
That leaves room for the market outside the United States to grow by double-digit rates.
"We see the overall market in Europe at between €700 million and €900 million in 2018," Mai said, adding that Allianz aimed to grow with the market and hold a share of around a fifth.
Allianz has brought several types of risk cover, including some existing insurance products, into a single package for its cyber offering, which it expects will be of interest to telecoms companies, software houses, online retailers and banks.
Annual premiums would range from roughly €50 000 to €90 000 and would offer between €10 million and €50 million of protection, Mai said. The insurer is rolling out the package in western Europe, Australia and New Zealand this year, and will target several Asian countries in 2014. It does not plan to offer it to US-based customers, where the liability rules make the market
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