Cyber insurance a highly profitable sector globally, has recorded strong growth over past four years, Moody’s says
- US cyber insurance sales at US$2 billion last year, a cumulative annual growth of 26 per cent since 2015
- Zurich Insurance, Peak Re see strong growth in Hong Kong
Cyber insurance, which covers losses emanating from loss of data as well as liabilities arising from cyberattacks, has recorded strong growth globally over the past four years, Moody’s Investors Service said in a report last week.
The rating agency said it was a highly profitable business line for global insurance companies. “The proliferation of new rules around the globe boosts demand for cyber insurance, but also raises questions and highlights uncertainty around the scope of insurance coverage,” said Sarah Hibler, Moody’s associate managing director.
According to the report, based on US financial regulatory data, direct cyber insurance premiums grew to US$2 billion last year, or a cumulative annual growth rate of 26 per cent since 2015.
In Hong Kong, while the Insurance Authority does not have data for cyber insurance, Zurich Insurance and Peak Re have both seen strong growth.
“It is true that we see a lot of interest from insurance companies across Asia in growing their cyber business,” said Franz Josef Hahn, chief executive of Peak Re, Hong Kong’s home-grown global reinsurance company.
