The Cyber Liability Insurance Cover (CLIC) or otherwise referred to as cyber insurance, is a market that grew significantly in 2015. One of the main factors that contributed significantly to this growth is the constant increase of threats in the cyber space and more specifically the high profile data breaches that took place during the past years. Due to these data breaches companies were taken to court and were forced not only to cover the losses, but to take upon the extra costs for the data breaches as well. In most cases, these additional costs included crisis management, legal costs, reputational damages, engaging in identity theft resolution, credit and fraud monitoring and further technical costs as well.
Under the potential threat of a breach and the inevitable consequences, this has established not only a need but also a demand for a cyber insurance market. This has also been highlighted by a cyber survey conducted by RIMS. The survey showed that 74 percent of the companies without Cyber insurance will be purchasing one within the next two years. Likewise, by 2025 the total annual premiums for stand-alone cyber insurance are projected to grow to $20 billion.
