Financial Crime World

Switzerland Faces Alarming Cybercrime Gap as New Risk Model Reveals 90% Insurance Shortfall

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Zurich, Switzerland - A Wake-Up Call for the Industry

A new risk model for cyber risks unveiled by the Swiss Insurance Association (SIA) on Wednesday has highlighted a massive insurance gap in the country’s finance industry. The model calculates that there is a one percent chance of a large-scale cyber event occurring each year, resulting in total economic losses exceeding CHF 2.5 billion.

A Massive Coverage Gap

Under current conditions, only around CHF 155 million would be insured, leaving an enormous coverage gap of approximately 90%. This has prompted industry leaders to call on insurers to step up their efforts to close this gaping coverage gap.

Key Statistics at a Glance

  • Only 7% of companies in Switzerland are currently insured against cyber attacks.
  • The premium volume for cyber insurance products reached around CHF 108 million last year, covering just over 46,000 corporate clients and approximately 292,000 private clients.

Industry Leaders Call to Action

Industry leaders are now urging insurers to take the following key measures:

Preventive Measures Among Companies

Implementing preventive measures among companies is crucial in reducing the risk of cyber attacks. This includes investing in robust security systems, employee training, and regular software updates.

Collecting Data with Government and Scientific Institutions

Collaborating with government and scientific institutions will help provide valuable insights into emerging trends and vulnerabilities. By sharing data, insurers can better understand the scope of the problem and develop more effective solutions.

Increasing Market Coverage

With premium volumes expected to double every two years, there is still a pressing need for insurers to provide adequate protection against these growing risks. Insurers must increase market coverage by offering more comprehensive cyber insurance products that meet the needs of businesses and individuals alike.

The threat of cybercrime continues to escalate globally, and Switzerland’s finance industry can ill afford to ignore this warning sign. With the right strategies in place, the industry can work together to close the coverage gap and provide better protection against these growing risks.