Opportunities for Cyber Insurance to Address the Challenges of Cyber Attacks: Repercussions for SMEs

The cyber insurance market has doubled in just two years reflecting how highly ranked cyber risks are within risk reports for all organisations, corporations, businesses and enterprises. Cyber risk is predicted to remain the main critical risk for organisations and enterprises up until 2026. The insurance industry has been recognised as playing a crucial role in promoting advancements in cyber security, which is advantageous to policymakers and insurers alike. Tremendous opportunities are possible for the insurance industry due to an increasingly expanding digital economy. Nevertheless, there are still significant risks with the primary challenge in this market being the identification and quantification of such risks. This paper explores the history of cyber insurance, the issues that may face insurers and policyholders alike, and how insurance can help to strengthen cybersecurity via enhancing resilience and lessening the impacts of cyber-attacks. It will give some examples of good practice at present in the market and culminate with some recommendations.