A significant threat


A cyber insurance policy is the perfect supplement for a comprehensive cyber security management strategy.

Cyber insurance is a broad term for insurance policies that address first and third party losses as a result of a computer-based attack or malfunction of information technology systems. There is hardly a single standard policy to cover cyber risk as the characteristics of cyber threats vary widely across industries and corporation size, while the terms and coverage of policies can be complicated at times.

Companies need to have a deeper understanding of their own exposure as it will help determine the appropriate type and amount of coverage required based on their risk tolerances. Therefore, beyond key risk mitigation measures such as firewalls, regular employee training, solid back-up procedures, timely security patch processes and tested disaster recovery plans, a cyber insurance policy is the perfect supplement for a comprehensive cybersecurity management strategy.

Systemic cyber accumulation risk poses a significant threat to the cyber insurance and reinsurance market. It is defined as an event, which derives out of the same nexus with potential effects to the entire cyber portfolio of an insurer/reinsurer. Examples of hightened accumulation risks are dependent business interruption, zero day vulnerability, silent cyber and cyber terrorism. Contributing to the systemic exposure, economies have high and continuously growing levels of dependency on IT systems, applications and software. Growth in connectivity between digital and physical worlds, and the progress in commercial deployment of Internet of Things and artificial intelligence will translate into new vectors of cyber-incidents and further increase risk aggregation effects.

Hannover Re’s approach to cyber insurance is, albeit decentralised, coordinated and aligned in areas such as required exclusions, appetite for certain industries as well as submission requirements in order to assure adequate assessment along the value chain.

Underwriting policy

Hannover Re is your reinsurer for all kind of cyber related risks. Our goal is to provide flexible and meaningful support for your reinsurance needs, for both treaty and facultative business worldwide.

We support various types of cyber insurance solutions for first and third party coverages across most industry classes. We are competent partners to elaborate innovative, complex structures as well as tailor-made solutions. For treaty business we support both established insurers as well as new entrants with innovative niche offering across the globe.

Our lean structure and short lines of communication enable speedy delivery of solutions to our customers; we warrant high availability and strive for cooperative outcomes.

With a committed group of experienced underwriters and access to vast global expertise, we are your trusted reinsurance partner.

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