Cyber insurance is now a requirement for businesses, yet the need for personal protection is growing and personal cyber attack insurance could become normal soon.
Recent big cyber attacks —Â including the Equifax hack affecting around 700,000 people in the UK — have raised awareness of the risk of cyber attacks.
Meanwhile some insurers — one being property insurer Oak Underwriting — have started including cover for cyber crime within their cover.
Oak Underwriting gives high net worth customers support by investigating and rectifying damage caused to their device, locating, and removing viruses, and a consultation to prevent future cyber attacks.
For an eye-watering £100,000 people can upgrade to a more comprehensive policy insuring against misuse of personal data, and ransomware.
While this is only being targeted at the wealthy for now, there’s a growing realisation that businesses are not the only targets of cyber-crime.
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By GlobalDataSimilar insurance products are currently available via AIG and Hiscox, both of which provide protection for HNW individuals against a number of forms of cyber-attacks.
Meanwhile Hartford Steam Boiler Inspection and Insurance Company, part of Munich Re, are offering personal cyber attack insurance in the US.
Wealthy people are an ideal entry point to this market.
With their high level of wealth raising their profile as lucrative targets for cyber-criminals, and as they generally own the latest gadgets, the wealthy are at far higher risk than the general population.
However, the growing reliance on technology by the general public in their day-to-day lives is increasingly making this a mass market opportunity for insurers.
Worryingly, all wifi connections can be hacked due to flaws in universally used security protocol, previously thought to be secure, according to researchers at Belgian university KU Leuven.
Such developments could lead to personal cyber insurance policies becoming a necessity in the coming years.
Although initially such products are only being offered as add-ons, the potential to offer cyber insurance as a standalone policy is likely to emerge over time once the market develops and uptake increases.
There is also potential for such policies to be purchased alongside new gadgets, allowing for premium prices to be more specific and reflect the level of risk posed by each gadget.
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