Demand side expectations of cyber insurance
Ulrik Franke, Per Håkon Meland · 2019
Cyber insurance has attracted much attention from both practitioners, policymakers and academics in the past few years. However, it also faces some challenges before it can reach its full potential as a tool for better cyber risk management. One such challenge is the gap between what customers expect and what insurers really offer. This paper investigates this gap empirically, based on interviews with informant companies in Norway and Sweden considering cyber insurance. The expectations expressed in the interviews are compared to anonymized incident claims reports and claims statistics for 2018 from a global insurance intermediary. The results show no obvious pattern of discrepancies between different domains. However, informant expectations on business interruption coverage are much greater than one would expect from its share of claims. In this respect, informant expectations on business interruption coverage are more aligned with some recently published scenarios on possible major business interruptions.