Insurers often point out that there is no comprehensive cover for cyber risks offered under any other insurance form than the cyber risk insurance. They seem to be correct in terms of a comprehensive cover; however, certain elements of the risks can be covered under alternative insurances. As cyber insurances usually are dividable, businesses could save premiums and avoid double insurance situations by taking an extra look at their current insurance cover. Inadequate cover under property insurances and the current absence of mandatory breach notification laws makes at least the first-party coverage attractive to European businesses today – business interruption and damage to a company’s brand can be crucial. Insurers’ fingers are however crossed whilst they hope for increased demand for third-party cover.
Since compulsory breach notification was a key factor when cyber risk insurance grew in USA, the introduction of stringent cyber security regulations in the EU reform is expected to boost the cyber insurance market in Europe. Even though the draft EU data breach notification regulation might be altered and possibly linger a couple of years before it is in place the proposal seem to have changed the game.
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