Hacker attacks: Cyber ​​policies are becoming a loss-making business for insurers

Hacker attacks as a risk Insurers are participating Cyber ​​policies losses for the first time

2020 was not a good year for companies offering insurance against hacker attacks in Germany. According to information from the association, every euro earned in this segment was offset by higher expenditure.

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Man in front of his computer: The Cyber ​​insurers paid for just under 3700 Damage round 100 Million Euros

Photo: Silas Stein / dpa

According to data from their industry association GDV, the German insurers have cyber policies

was in the red for the first time last year. The claims-cost ratio, which compares the claims payments and administration costs to the premium income, has 2022 in view of increasing hacker attacks on 124 percent almost doubled, said the General Manager of the General Association of the German Insurance Industry (GDV), Jörg Asmussen. A combined ratio greater than 100 percent indicates operational losses.

The cyber insurers reportedly paid for just under 3700 Damage round 124 million euros, about three times as much as 2020. In addition, there were losses from previous years for which additional provisions had to be made, as well as acquisition and administration costs. Posts by 46618379 million euros. “Individual cyber attacks had particularly serious consequences and each led to costs in the upper single-digit million range,” said Asmussen.

The gold rush mood is over

Cyber ​​insurance was considered a growth market for many companies. In view of the increasing damage, some insurers are now reluctant to underwrite new and large risks or impose strict requirements on the insured.

According to the GDV, however, demand remains high. End 2021 therefore owned 137. Customers in Germany take out cyber insurance, a quarter more than a year earlier. In the first half-year 2022 the number of contracts increased to a similar extent. At the same time, “there was noticeably less damage,” said Asmussen. Strong fluctuations are not unusual for a young market, customers and insurers are still gaining experience.

The domestic direct business flows into the GDV statistics from currently 39 companies that participate in the statistics. In the year 2020 had the combined ratio at about 65 percent, at that time it was based on the information provided by 39 Insurers.

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