Lloyd's: European companies are under-insured against cybercrime
In 2017, computer attacks cost between 445 and 608 billion USD worldwide. Despite the potentially high costs of claims, European companies remain poorly armed against cybercrimes.
According to a study recently published by Lloyd's, this risk remains under-insured in Europe. In the United States where 46 out of 50 States have regulatory requirements regarding data protection, the cyber insurance market is much more mature.
The lack of strict regulation and the poor understanding of the cyber-threat would therfore impede the development of cyber insurance in Europe.
The introduction of a new General Data Protection Regulation (GDPR) which came into force in May 2018 should encourage European companies to underwrite more widely this type of risk. Any company that does not comply with this legislation will be liable to heavy fines.
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