There’s warning reverberating around the insurance industry that someone with the stature and virtual clout of Google could enter the cyber insurance marketplace and steal a lucrative march on those established insurance product-offering presences which remain somewhat ambivalent towards the whole subject.
That’s the fervent belief of global insurance practitioners, www.pwc.co.uk who have been talking with respected news agency, www.reuters.com of late with regards to the way in which this aspect of the industry is panning out.
Expressing concern that if potential cyber insurance providers deliberate too long over when and where they should enter the fray, the risk of a powerful disruptor gate-crashing the party increases and subsequently monopolising the sector by deploying aggressive price-cutting tactics and seemingly more favourable terms than those which are already being peddled by existing insurers who have taken the plunge.
It’s feared that the unwelcome guest could easily take the previously unexpected shape and form of Google, a move which would immediately appeal to what PwC’s spokesperson, Paul Delbridge described as core future policyholders. Namely the 20 and 30-year old so-called ‘Millennials’ who would have grown up and learned to trust any such insurance overtures made by brands familiar to them, including the likes of Google or Apple for example.
Next Generation of Would-be Cyber Insurance-Buying Policyholder Would Trust Familiar Brands Such as Google and Apple over Existing, Conventional Insurers
From the perspective of these customers the aforementioned represent brands which their more likely to relate to and entrust with their all-enveloping cyber insurance requirements than conventional insurers who have long provided the full spectrum of traditional insurance products.
Delbridge says; “”I can see Google being very creative,” which is underlined by the fact that technology companies are also perceivable both better equipped and placed than the more orthodox insurance companies when it comes to putting prices on the cyber risks posed.
As it stands the consultancy report drafted by PwC found that of those insurers and re-insurers presently covering cyber products, most are quoting high prices whilst fixing a ceiling on potential losses.
This in effect is seen as a non-negotiable stumbling block for companies seriously considering investing in cyber policies according to the research, and with a cyber insurance sector which is forecast to triple in size to account for in the region of £4.9 billion in annual premiums by the year 2020 (while German insurer, Allianz go further by suggesting the market could expand to $20 billion by 2025), experts are of the belief that the industry could face stiff competition from newcomers if it sits on its hands in the intervening period and does nothing in terms of insurance product development in the interim.