General liability and property insurances typically do not cover cyber risks in their terms, leading to the emergence of cybersecurity insurance. Cybersecurity insurance is designed to mitigate losses from various cyber incidents, including data lost, data breaches and business interruption.
According to PwC, about one-third of U.S. companies currently purchase some type of cybersecurity insurance. From an insurer perspective, the number of U.S. insurers providing cyber insurance continues to grow along with instances of cyber attacks. In 2017, 170 U.S. insurers reported writing cyber insurance, up from 140 in 2016 and 119 in 2015, according to Aon’s latest report. By 2020, the total value of cybersecurity insurance in U.S. is forecasted to reach $7.5 billion.
While in China market, cybersecurity insurance is still evolving. China has lagged behind the U.S. for 5-10 years. In 2018, there are less than 5 insurers providing cybersecurity insurance with limited coverage. However, companies in China are still top targets of cyber attacks. Under such circumstances, a growing and enormous cybersecurity insurance market in China is forming.
Since 2014, Insure-Box has been actively engaged to find ways to expand the cybersecurity insurance market’s ability to address this emerging cyber risk area in China.
Mr. Lu Yang, CIO of Insure-Box, illustrated China’s first successful cloud insurance research and development project at LendIt’s 2018 event, which is a typical example of a cybersecurity insurance initiative. Dozens of famous cloud service providers in China are now actively adopting cloud insurance provided by Insure-Box to mitigate their risk while providing cloud service to their customers.