Insurance industry executives expect that cyber insurance business will surge in the coming years, against a backdrop of growing cyber risks and the greater adoption of technology in various sectors.
However, the current volume of cyber insurance premiums in the market is still modest despite the steady growth of this line of business, reported Al Roeya. Cyber insurance policies tend also to be more difficult to understand by companies, especially small and medium ones.
In addition, the process of purchasing this cover remains difficult, despite the fact that many insurers are offering it. Al Wathba National Insurance Company CEO Bassam Chilmeran said that insurers need to look into how prospective customers secure themselves against cyber attacks. This requires the insurers to examine their clients’ cyber protection systems.
Emirates Insurance Association secretary-general Fareed Lutfi said the demand for cyber insurance policies is still low due to the lack of awareness and clarity of coverage. Furthermore, many people feel that the risk is remote.
According to the World Economic Forum’s ‘Global Risks Report 2022, the risk of cyber security failure is ranked among the top five concerns for several small, highly digitalised economies, including the UAE, Denmark and Singapore. M