Growing new market! Just wondering whether traditional insurance underwriting models make this work as different concentration risks exist as well as historical data is not so public
The increasing incidents of cybercrime is sparking European executives’ interest in insurance policies that cover the fallout from hacking, officials at insurance firms say in Europe say. Demand for such protection is rising, said Jens Krickhahn, a cyber-risk expert at German insurer Allianz ALV.XE -1.21%. “Our number of deals has increased significantly,” he said about Allianz’ cyber business. He declined to disclose sales figures. Industry experts said the European market for cyber insurance, while growing, is still at an early stage and several years behind developments in the U.S. Sales of such contracts are still minuscule, despite rising awareness of the risks among customers. Allianz’s cyber policies cover the costs of investigations, customer notifications and credit-monitoring services, as well as legal expenses and damages from consumer lawsuits. Allianz introduced the product in 2013.