Allianz Global Corporate & Specialty chief executive for Germany and central Europe Christopher Lohmann tells us about Germany’s cyber insurance market
Q: As of now, the German market for cyber insurance is rather small.
A: You’re right. We estimate the total premiums amount to between €50m and €70m. This is a small market indeed, compared with the approximately $1.3bn insurers generate in the US.
Q: Still, you launched a new cyber cover in July.
A: We are absolutely confident about the high potential of the market. The reason is: by being up to date with technical safety solutions, companies can do away only with some cyber risks. There will always remain a residual risk – and that’s why it is a genuine insurance subject. With our new insurance, we provide cover for the whole range of cyber risks. This is more effective than several contracts for different cyber risks, as it used to be.
Q: How does your product work?
A: It’s a combined policy with different elements. First, you have a liability cover for damage to third parties. Then, there is an insurance for damage at the own company, including business interruption as a result of loss of data. Also, we help with different services. Whether it is about paying specialists to find out the reason for an IT problem or to help with crisis management.
Q: DVS chief executive Hans-Jürgen Allerdissen complained that capacities of individual German insurances were too small, and that they differ too much with respect to contract details, so that big companies could not get sufficient cover by combining different contracts.
A: My view is different. We offer cover up to €50m. And we have done layering concepts reaching more than €100m with several members of German stock market index DAX, and we see more demand coming. Companies want it and there are buyers. That’s the difference compared with what you see with cover for business interruption without preceding property damage.
Q: What clients are you aiming at?
A: It’s not bound to a certain target group. For smaller companies, we have the standard policy with a cover of €10m. Our focus with this contract is that companies have to do very little in terms of risk assessment, so it is easy to implement. Then, there is the premium model, which covers €50m. Finally, we offer, together with a captive and other providers, a layering option with €100m or even more.
No comments yet