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The next generation of cyber risks could involve real-world damage: Allianz | Canadian Insurance
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The next generation of cyber risks could involve real-world damage: Allianz

Cyber crime currently costs the U.S. $108 billion a year

Over the next decade, cyber risks will move from corporate hacking to  intellectual property theft, cyber extortion and business interruption after a breach, Allianz’s Guide to Cyber Risk reports. Hackers can not only gain control of computer systems but energy companies’ industrial control systems and robots used in the manufacturing sector. And, for ever more real-world implications, a cyber attack at a utility company could lead to significant power losses and physical damage.

Cyber crime is already expensive–it costs the United States $108 billion and China $60 billion each year, Allianz says–and more and more companies will look into cyber insurance. Allianz predicts annual global premiums will jump from $2 billion to $20 billion in the next decade.

“Growth in the US is already underway as data protection regulations help focus minds, while legislative developments and increasing levels of liability will see growth accelerate in the rest of the world,” says Nigel Pearson, who is globally responsible for cyber insurance at Allianz. “There is a general trend towards tougher data protection regimes, backed with the threat of significant fines in the event of a breach.”

 

Image: Allianz