Cyber policies are forecast to rise from $35bn this year to $8bn - $10bn by 2020. A number of recent incidents have brought concern over cyberattacks to the fore. For example, the after-effects of the attack on Merck pharmaceuticals last year cost the company $260m in loss of sales, $320m on additional marketing and production, and the company says it will lose another $200m this year. Insurance is estimated to cover around $275m. Since other well-publicised attacks (see earlier news items) by WannaCry, NotPetya, the breaches at Equifax, and Target among others, companies are buying insurance in ever greater numbers. Retail is estimated to account for some 12% of total cyber insurance claims. The insurance industry is happy with the growth (17 insurers selling $350m of cover in 2007, and 65 today selling $3.5bn) but struggling with the unpredictability (models have yet to be built and insurers fear aggregation, that is, the simultaneity of attacks). GDPR regulation to be introduced in Europe in May with substantial fines, is also raising awareness and fear.

See article from financial times: cyber attacks, the risks of pricing digital cover