Greater China cyber insurance demand to soar after WannaCry attack: AIG
Demand for cyber insurance from firms in Greater China and elsewhere in Asia is poised to soar, based on enquiries received after the "WannaCry ransomware" attack earlier this year, executives at American International Group Inc (AIG.N) said.
The U.S. insurer saw an 87 percent jump in enquiries for cyber insurance policies in May compared to April for Greater China, including Hong Kong, as a direct result of the WannaCry attack, while the global increase was 38 percent, they said.
"The big increase means the organizations are aware they really need protection," said Cynthia Sze, head of an AIG business in Greater China, which sells products to companies dealing with cyber breaches. AIG executives declined to give details on numbers or say how many of the enquiries actually resulted in policy sales.
The self-replicating WannaCry malware in May infected over 200,000 computers in 150 countries.
The global cyber insurance market is worth $2 billion, with 30 percent of middle to large firms purchasing cyber insurance protection, according to AIG. The insurer has also seen an average annual growth rate of 20 to 25 percent in cyber insurance policies over the past three years worldwide, Kelly said.
According to Kelly, the annual damage from hackers to the global economy reached about $400 billion in 2015.