High prices for cyber cover are charging and placing a ceiling on possible losses, discouraging firms from purchasing cyber polices, consultancy PwC said in the report.
Some insurance companies have kept out of the marketplace, cautious of the dangers entailed.
“In case the business takes too long, there’s a danger a disruptor could move in and corner the market by aggressively cutting costs or offering a lot more favourable terms,” PwC said.
Millennials – folks in their 20s and 30s – are prone to trust brands like Apple or Google than insurance partner at PwC, traditional insurance companies, Paul Delbridge, told Reuters.
“I can see Google being really creative,” Delbridge said.
Technology firms could likewise be better equipped than insurance companies to cost cyber threat, he added.
Nevertheless, the European Union is anticipated to follow suit, giving strongly to increase in cyber insurance, Delbridge said.
There’s an overall tendency towards more demanding data protection regimes, backed with the threat of substantial fines in case of a violation,” said Nigel Pearson, responsible for cyber at Allianz Global Corporate & Specialty.