Thursday, July 11, 2013

Allianz Eyeing To Enter Into “Cyber Insurance”

Seeing cyber insurance a potentially lucrative business, Europe's biggest insurance company Allianz is looking to encash the opportunity. In recent times, a significant growth in corporate demand for insurance against computer hacking and internet breakdowns has been seen.
Allianz is a Germany based multinational financial services provider. Its core business is insurance. It is present in India through a joint venture with Bajaj Finserv Limited.
Mr. Hartmut Mai, Board Member at Allianz's AGCS unit for Global Corporate and Special Insurance Risks said, “We see cyber insurance as a big growth market.”
In coming days a substantial growth in the cyber insurance market in Europe is expected especially when the European lawmakers are assuring larger penalty for companies that lose data.
Speaking to the reporters, Mr. Mai said, “If my production lines are silent because my cloud (computing) provider cannot make the data I have stored there available, then that could threaten the company's existence.”
Cyber insurance products in the United States are already well developed, generating premiums of around $1.3 billion per year, they are drawing premiums of only around 150 million euros in continental Europe, including between 50 million and 70 million in Germany, which leaves space for the market to grow up to double-digit rates outside the United States, Mr. Mai added.

Talking about the premiums and coverage, Mr. Mai said that the annual premiums would range anything between € 50,000 to € 90,000, offering protection between10 and 50 million euros.
In its first step, Allianz is planning to rolls out the scheme in Western Europe, Australia and New Zealand this year and will target several other Asian countries in 2014.

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