Thursday, 14 July 2016

Demand and Supply: Can Insurance Companies Provide Enough Coverage?

With the ever growing cyber risks to businesses all over the world, cyber insurance policy insurers have been projected to record gains in this policy in the next 5-10 years. As surprising as this may seem, it shows there is no solution in sight to curbing cyber-attacks. As the world becomes more and more aware of cyber risks to business, the demand for cyber insurance has skyrocketed over the past few years.

It is no longer a matter of whether businesses are willing to purchase cyber insurance policies; it’s more about if these cyber insurance companies can provide enough for the growing need. In recent times, there has been an increase in the premiums for buying and renewing cyber insurance. The world is now technologically driven and many businesses have taken their business to the internet.

As good as this may seem, it predisposes them to the effect of cyber risk. Since cyber insurance stands as the only viable solution for businesses, the increase in demand for such policies will continue to grow. To avoid limitation or placing of caps, governments all over the world have to come together to support these insurers to help provide coverage for businesses.

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