Pool Re aims to extend its cover to include cyber attacks on property, according to the chief executive of the government-backed mutual terrorism reinsurer.
Speaking to Reuters, Pool Re CEO Julian Enoizi said the reinsurer, which has held discussions with the government and the insurance industry, is hoping to add cyber to its coverage in the next few months.
According to Enoizi, Pool Re needed to be prepared against cyber attacks on property and other incidents even if they had been ruled out as terror attacks.
“Insurance is there for the unimaginable – we’re here to insure the unforeseen,” Reuters quoted him as saying.
Demand for cyber cover is expected to rise due to the implementation of new European Union law on data privacy by 2018. Under the legislation, companies will be required to inform authorities of data breaches that are potentially harmful to individuals.
However, most cyber policies relate to data loss, Reuters noted, rather than attacks on property.
“We see this as a gap in the cover,” Enoizi told the news agency.
Enoizi also said that any increase in the premium costs to businesses due to the addition of cyber cover would come with discounts for implementing government-approved cyber security policies.
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