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Cyber insurance in Japan increasingly in demand

Tinuku ~ Cyber insurance is gaining in popularity in Japan and rapid increase in the number of purchases of insurance products used to protect businesses and individual users from risks in the digital world. The number of cyber insurance users in the fiscal year 2016 to March 2017 increased by 250 percent over the previous period.

Tinuku Cyber insurance in Japan increasingly in demand

Mitsui Sumitomo Insurance said cyber insurance users increased by 250%, Tokio Marine & Nichido Accident Insurance said the increase reached three-fold, AIU Insurance also said the increase 50%, while Sompo Japan Nipponkoa Insurance said premiums increased 350%.

Businesses acknowledge that huge losses will arise from information theft thereby encouraging an increase in the number of cyber insurance policies. A few days ago the South Korean government is also trying to continue to promote the cyber insurance industry.

Japan Network Security Association as a nonprofit organization says 468 cases of theft of information through cyber attacks and other ways in 2016. The number of victims of theft of personal information continues to rise from 10.15 million to 15.1 million during the period and 80 percent of cases are due to by cyber attacks.

The compensation paid by the affected companies is estimated to be nearly 300 billion yen (US$2.7 billion). The average number per case also doubled from the previous year to about 674 million yen.

Japan's National Police Agency said the number of attacks using email containing viruses and sent to the company continued to increase for three years. The number of cases reached 4,046 in 2016 or up 218 from the previous year which marked the highest number since 2012.

Cyber insurance covers the risks of damage compensation costs due to information theft, research costs about possible damage and loss of termination of sales activities or assembly lines. Also the cost of repairing the system after the company is affected.

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