Airmic review of recent developments in the cyber insurance market

Airmic members have become increasingly aware of the cyber risk exposures faced by their organisation. However, in order to open a discussion with the IT specialists, Airmic members need to understand the range of cyber risks faced by the IT systems and networks in their organisation and the availability of suitable insurance for cyber risks. This report presents an overview of the range of cyber risks faced by organisations and a review of the cyber risk insurance market. It provides a commentary on the significant developments that have occurred within the last two to five years.

In summary, this research into the scope and availability of cyber insurance was undertaken by Airmic in order to provide the following:

1. an overview of the range of cyber risks exposures that can materialise and encourage risk managers to evaluate all cyber risks, including data security.

2. an insight into the questions that they should ask about the need for cyber risk insurance within the risk manger's own organisation.

3. an account of the developments that have taken place in the availability, relevance and cost of cyber risk insurance during the past two to five years.

4. a description of the coverage currently available in cyber insurance products in terms of the scope and possible costs associated with this insurance.

5. a list of the questions that are asked in a typical cyber risk proposal form as a means of undertaking a preliminary check on the status of IT risks in the organisation.