Cyber Insurance is one of the big growth markets but it is also one of the most unpredictable.
"It doesn't give me a warm and fuzzy feeling"
Christian Mumenthaler Chief Executive Swiss Re
In a similar vein Stephen Hester Chief Executive of RSA was reported to say "We have mixed feelings about cyber insurance. Our job is to protect clients from the things they are worried about but it is incredibly unpredictable".
Unlike other perils there are too few data points to model the risks. Oliver Ralph examines the issues in the FT article linked below
That demand has been met with a mixture of delight and fear in the insurance world. Delight because cyber offers the potential for growth, unlike most other parts of the global specialist insurance industry where demand has been static for years. And fear because cyber insurance is so difficult to price. Like many of their clients, the insurers are struggling to assess the causes and consequences of large-scale cyber attacks, and to predict where the next one might come from or how big it will be.
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