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Man in front of his computer: The cyber insurers paid around 137 million euros for almost 3,700 claims
Photo: Silas Stein / dpa
According to data from their industry association GDV, German insurers were in the red for the first time last year with cyber policies.
The claims-cost ratio, which compares claims payments and administrative costs with premium income, almost doubled to 124 percent in 2021 in view of increasing hacker attacks, said Jörg Asmussen, general manager of the German Insurance Association (GDV).
A combined ratio of more than 100 percent indicates operational losses.
According to the information, the cyber insurers paid around 137 million euros for almost 3,700 claims, around three times as much as in 2020. There were also claims from previous years for which additional provisions had to be made, as well as acquisition and administrative costs.
This was offset by contributions of 178 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 seen as a growth market for many companies.
However, in view of increasing claims, 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.
At the end of 2021, 243,000 customers in Germany had cyber insurance, a quarter more than a year earlier.
In the first half of 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 of currently 39 companies that participate in the statistics is included in the GDV statistics.
In 2020, the combined ratio was around 65 percent, based on information from 33 insurers.
mbo/Reuters