“Cyber insurance premiums amount to just a fraction of total losses from cyber attacks, with estimates putting the protection gap at 90%. There is much work to do to ensure sufficient risk protection is available to make society more resilient to cyber risk, and this effort will require collaboration between businesses, the insurance industry and government.”
Swiss Re has several recommendations:
- Improve pricing by better data quality and modeling
- Update and standardize policy language
- Share risk via public/private partnerships and cyber insurance-linked securities
The report includes useful graphs, including the one below visualizing the relationship among premium and policy growth and loss ratios:
Source: Cyber insurance: strengthening resilience for the digital transformation
