Data and analytics company GlobalData has suggested that while much of the focus of the cyber insurance debate has been on the commercial segment, personal cyber protection could become a necessity over the next few years.
Recent high-profile events such as the Equifax hack, in which the personal data of almost 700,000 UK customers was compromised, have increased general public awareness of the risks of cyber attacks and, according to GlobalData financial analyst Daniel Pearce, ‘such developments could lead to personal cyber insurance policies becoming a necessity in the coming years’.
Insurers such as Hiscox and AIG are already providing personal protection for high net-worth (HNW) individuals, and Oak Underwriting has announced a partnership with Das, through which Oak will offer cyber crime cover as part of its legal expenses and home emergency cover.
“The cover will aim to provide HNW customers with support by investigating and rectifying any damage caused to their device, locating and removing viruses, as well as providing professional consultation in order to prevent future cyber-attacks,” said Pearce. “In addition, customers can upgrade to a more comprehensive policy with a limit of £100,000, which will also insure payments liable as a result of an attack, misuse of personal data, and ransomware.”
For the moment, it is expected that these products will be add-ons rather than standalone policies, but as the market expands, it is likely that cyber insurance cover will develop accordingly.
“There is also potential for such policies to be purchased alongside new gadgets,” added Pearce, “allowing for premium prices to be more specific and reflect the level of risk posed by each gadget.”