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More German companies turning to cyber insurance

Staff writer |
The rising number of hacking attacks is prompting more companies in Germany to seek cyber insurance protection, insurance broker Marsh said.

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Cyber premiums in Germany are expected to be worth around $10 million this year, compared with $2 billion in the United States, and the German market is expected to grow by 30 percent per year in the future, Marsh estimated.

"We are seeing a wave of enquiries that will lead to many more contracts in the coming months," the head of Marsh's German business Georg Braeuchle told a news briefing.

Many insurers see cyber as a key growth area at a time when premiums in other types of insurance are under pressure due to chronic over supply of insurance availability.

However, insurers are also advancing cautiously and will not cover all the losses a company could face from a cyber attack.

Marsh has brokered 46 contracts so far this year in Germany, compared with 20 in all of 2014, with industrial espionage and hacking attacks - such as one that forced the German parliament to switch off its entire computer system - helping to raise awareness.

Around 15 insurers are active in the German market, allowing individual clients to take out up to 500 million euros ($562 million)in cyber risk cover.

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