Insurance Information Institute

Cyber Insurance Industry Booming After Latest Hacking Attacks

Necessity is the mother of invention - and the latest worldwide cyber-attack appears to come with a silver lining for one budding industry.

After the global ransom ware attack revealed vulnerabilities in millions of organizations worldwide, an escalating demand for cyber insurance has been created.

“I think we'll see more through weeks and months to come,” said Thomas Reagan, the cyber practice leader for Marsh. “Particularly for industries that have been historically been relatively undeserved by cyber insurance, like manufacturing.”

It's no longer just about data breaches or theft of personal information. Now, the policies include physical damage as manufacturing becomes "smarter" and machines become more connected.

The cyber insurance market is still relatively small as the Insurance Information Institute pegs it at just over $3 billion. But experts say it's poised to become the next big blockbuster business for the long-struggling insurance industry, with the market expected to triple by 2020.

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