Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2015
09

Cyber crime costs global economy $445bn a year

Open-access content Thursday 24th September 2015 — updated 5.50pm, Wednesday 29th April 2020

Global losses from cyber crime have been estimated at $445bn (£291bn) a year, according to an insurer.

2

A report by Allianz Global Corporate & Specialty (AGCS) said the world's largest 10 economies collectively accounted for half of these losses, totaling $250bn (£164bn). 

They were: the US, China, Japan, Germany, France, the UK, Brazil, Russia, Italy and India. 

In the UK, the cost of cyber crime was estimated at $4.3bn (£2.8bn), 0.16% of the country's GDP of $2.7trn (£1.8trn).

The firm said over the past decade data breaches involving personal data had become a "major concern" for many organisations, both in the private and public sector. 

Major corporations, governments and public services had been targeted by "hacktivists" - criminals using computer networks to promote a political agenda.

Chris Fischer Hirs, CEO at AGCS, said: "As recently as 15 years ago, cyber attacks were fairly rudimentary and typically the work of hacktivists, but with increasing interconnectivity, globalisation and the commercialisation of cyber crime there has been an explosion in both frequency and severity of cyber attacks."

AGCS said increasing awareness of exposures and regulatory change would lead to "rapid growth" in cyber insurance. It predicted premiums for cyber insurance would grow globally from $2bn (£1.3bn) per year today to more than $20bn (£13bn) over the next 10 years, a compound annual growth rate of more than 20%. 

Nigel Pearson, global head of fidelity at AGCS, said: "Growth in the US is already underway as data protection regulations help focus minds, while legislative developments and increasing levels of liability will see growth accelerate in the rest of the world."

Meanwhile, a PwC report has said worldwide premiums in the cyber insurance market could grow to $5bn (£3.3bn) per year by 2018 and at least $7.5bn (£4.9bn) per year by the end of the decade. 

PwC suggested insurers, reinsurers and brokers could capitalise on the cyber risk opportunity by maintaining their own cyber risk management credibility.

Paul Delbridge, insurance partner at PwC, said: "For insurers, cyber risk is in many ways a risk like no other. It is equally an opportunity. A more informed approach will enable insurers to reduce uncertain exposures while offering clients the types of coverage and attractive premium rates they are beginning to ask for. 

"Insurers also need to continue to invest appropriately in their own cyber security - a business which can't protect itself can't expect policyholders to trust them to protect and advise them. Given the huge volume of medical, financial and other sensitive information they hold, it is critical that insurers have closely monitored, highly effective cyber security frameworks in place."

This article appeared in our September 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Insurance sector bottom of best customer service league table

The insurance industry ranks bottom in providing the best customer experience, according to a survey.
Tuesday 22nd September 2015
Open-access content
2

Bouncy castles and trampolines biggest cause of injuries to children

Bouncy castles and trampolines are the most common cause of personal injury to children, according to an insurer.
Monday 21st September 2015
Open-access content
2

Pressures on life insurers to boost M&A activity and growth

Life insurers expect a “significant increase” in takeover deals in the next 12 months, but general insurers don’t anticipate acquisition activity to be as strong, PwC has said.
Tuesday 29th September 2015
Open-access content
2

Liverpool named whiplash capital of UK

Liverpool has been identified the third-party personal injury claims capital of the UK, actuaries have said.
Thursday 17th September 2015
Open-access content
2

Insurance intermediary shareholder banned and fined for misappropriating premiums

The Financial Conduct Authority (FCA) has fined a shareholder of an insurance intermediary and banned him from any financial functions for misappropriating more than £50,000 worth of insurance premiums.
Friday 11th September 2015
Open-access content
2

UK insurance industry urged to offer dashcam discounts

UK insurers have been urged to offer discounts to drivers willing to have a dashcam fitted in their cars.
Tuesday 8th September 2015
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from September 2015

2

Political animals in the workplace

Bonnie Marcus offers nine top reasons why women find office politics frustrating
Wednesday 30th September 2015
Open-access content
Joanne Segars, chief executive NAPF © NAPF

Actuaries and pension industry oppose pension tax changes

Responses from the pension industry and actuaries to a public consultation have shown no support for changes to the pension tax system.
Wednesday 30th September 2015
Open-access content
ta filler

One in 10 parents 'fronting' car insurance for children

One in 10 parents of young drivers admit to fronting car insurance for their offspring at some point, according to research.
Wednesday 30th September 2015
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 09

Joanne Segars, chief executive NAPF © NAPF

Actuaries and pension industry oppose pension tax changes

Responses from the pension industry and actuaries to a public consultation have shown no support for changes to the pension tax system.
Wednesday 30th September 2015
Open-access content
ta filler

One in 10 parents 'fronting' car insurance for children

One in 10 parents of young drivers admit to fronting car insurance for their offspring at some point, according to research.
Wednesday 30th September 2015
Open-access content
2

Life expectancy not rising as quickly as anticipated, says IFoA

Increases in life span have been “much lower than in the past” over the past four years, according to an analysis by the Continuous Mortality Investigation (CMI).
Tuesday 29th September 2015
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Manager - Building new team!

London (Central)
Up to £130k + Bonus
Reference
148845

Shape the Future of Credit Risk Model Development

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148843

Longevity Director

Flexible / hybrid with 2 days p/w office-based
£ six figure salary with excellent bonus potential + package
Reference
148842
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ