A subset of liabilities insurance under property and casualty insurance, cyber risk, at present, forms a small segment of P&C insurance. Currently, it does not boast of high adoption rates as that for life and automobile insurance. However, there are several reasons to pay attention to cyber security insurance, as a standalone profitable arm of enterprise insurance:

High Cost of Cybercrime (Directly Proportional to IoT adoption): A report in 2013 stated that the global cost of cybercrime is no less than USD 445 billion, annually. As higher number of businesses transfer core data to the cloud, and IoT adoption increases, these numbers are expected to rise, to generate an estimated USD 2 trillion or more, by 2020. Recent examples of cybercrime include hospitals held hostage for ransom, Bangladeshi funds taken from Federal Reserves, sensitive financial and contact information of private individuals put online, and much more.
- Typical data breaches include loss of PII (Personally Identifiable Information), PHI (Personal Health Information), Credit Card Information, and other threats, such as DDoS (Distributed Denial of Service), and Ransomware. Costs of remediating the consequences of a cyber attack have also increased, from USD 159 in 2015 to USD 170 in 2016, per record, for US-based enterprises. Forensic and other investigative costs related to detection and escalation have also increased: assessment & audit services, communication & management of resultant crisis have risen from USD 0.76 million as of 2015 to USD 0.99 million in 2016, as an average cost for US-based enterprises.
A Steep Rise in Premiums and Adoption by Diverse Industries: The range of crimes is undefined, as this is a niche market. As per our estimate, this industry is expected to grow at rates higher than any other insurance market. Premiums have grown from USD 0.6 billion in 2010 to about USD 2 billion in 2015. Lloyd’s is one of the companies that has actively ridden the wave of cyber insurance, as the risk was seen to develop, with a 45% premium growth year-on-year, since 2012.
Cybercrimes to Occur not only in developed nations, and Require a Common Legal Framework: Till date, crimes have focused largely on developed nations, with a high IT adoption level across all enterprises (even those that are not IT driven), owing to which, around 9 out of 10 cyber crimes were focused on US-based enterprises. This leads to an informal overreliance on US-based policies for cybercrimes. As many crimes afflict enterprises that are not based in the United States, this type of third-party liability risk appears disproportionately accumulated in the US market. However, this is changing as new guidelines and laws are introduced by other governments: The European Parliament introduced GDPR (General Data Protection Regulation) in April 2016 (to be enforced by May 2018), which is imposed on not only domestic enterprises, but all enterprises that deal with the EU citizens’ data. Penalties for not abiding include corporation fines of up to 4% of the annual global turnover. We estimate a common legal framework to emerge in the future, a strong indicator of a high growth market.
How to Measure the Monetary Cost of Cyber Risk: One of the challenges faced by companies observing high increase in revenues from cyber crime include credible ways of estimate the cost of potential risk. In a niche market, where causes of risk exposure are not properly articulated, evidence suggests that cyber-related (or IT related) touch points exist as only one window of risk exposure when it comes to cyber crimes. In fact, cyber risk exposure lies entrenched in property, marine or other formats, equally. Hence, it is important to understand the best ways to predict, track, measure, and prevent cyber risk? Our reports can help provide accurate information regarding these aspects.

Scope of the Report	Key Offerings by Mordor Intelligence
Market Size	How much is the cyber insurance industry worth, in the current year? How much will it be worth, by 2022? Industry size is segmented by sectors which have adopted cyber insurance, and others, which are predicted to do so, with detailed insights provided, geographically.
Industry Trends & Market Dynamics	Macroeconomic, microeconomic, and even unanticipated factors, ranked according to the extent of the effects, influencing the insurance market at the global level. These include drivers helping the business ride the wave, barriers that could eventually obstruct, and potential opportunities, before they are leveraged by the competition.
Technological Disruptions	Data and Analytics form an indispensable component of the (re)insurance market. Based on the company’s position in the value chain and the company's vision and mission for the future, Mordor provides the most relevant innovations (operational, technological, disruptive, and others) in the field.
Capital Trends & Metrics	How is capital access changing in (re)insurance segments, across regions and industry sub-verticals? What are the influencing factors in this exchange of capital? How can these insights be integrated to contribute to the short-term goals?
Competition Profiling	This is the most comprehensive segment of the report, enlisting competition across pertinent points in the value chain. An analysis of the competition for companies, segmented by their position in the market is provided. The coverage includes re-insurers, alternative capital sources, traditional insurance companies (listed exhaustively by sub-segments), and startups leveraging technologies and innovations. This section of the report facilitates sound and unbiased overview of the respective companies' strategies, in detail and throws light on how and why companies are adapting to the opportunities and challenges they foresee in the future while also competing in the existing structural environment of the P&C insurance products and services marketplace.

1. Executive Summary

2. Research Methodology

3. Estonia Insurance Industry Outlook

3.1 GDP and Economic Activity

3.2 Consumer Confidence

3.3 Inflation

3.4 Employment Rate

3.5 Interest Rates

3.6 Household Wealth

3.7 Growth in Services

3.8 Growth in Manufacturing

4. Estonia Regulatory Environment, Insurance and Insurance Investment Laws and Key Policy Initiatives

5. Estonia Market Dynamics

5.1 Drivers

5.2 Restraints

5.3 Opportunities

5.4 Challenges

5.5 Technological Innovations (Includes Blockchain)

5.6 Alternative Capital on the RIse

6. Estonia Market Segmentation

6.1 By Industry Vertical

6.1.1 Retail

6.1.1.1 Market Size (USD million)

6.1.1.2 Total Direct Premiums (USD billion), Historical and Future Trends

6.1.1.3 Claims Payments (USD billion), Historical and Future Trends

6.1.2 Healthcare

6.1.2.1 Market Size (USD million)

6.1.2.2 Total Direct Premiums (USD million), Historical and Future Trends

6.1.2.3 Most Costly Insurance Losses by Years (USD million)

6.1.2.4 Claims Payments (USD billion), Historical and Future Trends

6.1.3 Banking & Financial Services

6.1.3.1 Market Size (USD million)

6.1.3.2 Total Direct Premiums (USD million), Historical and Future Trends

6.1.3.3 Most Costly Insurance Losses by Years (USD million)

6.1.3.4 Claims Payments (USD billion), Historical and Future Trends

6.1.4 Logistics

6.1.4.1 Market Size (USD million)

6.1.4.2 Total Direct Premiums (USD million), Historical and Future Trends

6.1.4.3 Most Costly Insurance Losses by Years (USD million)

6.1.4.4 Claims Payments (USD billion), Historical and Future Trends

6.1.5 Aerospace & Defence

6.1.5.1 Market Size (USD million)

6.1.5.2 Total Direct Premiums (USD million), Historical and Future Trends

6.1.5.3 Most Costly Insurance Losses by Years (USD million)

6.1.5.4 Claims Payments (USD billion), Historical and Future Trends

6.1.6 IT and Tech Services

6.1.6.1 Market Size (USD million)

6.1.6.2 Total Direct Premiums (USD million), Historical and Future Trends

6.1.6.3 Most Costly Insurance Losses by Years (USD million)

6.1.6.4 Claims Payments (USD billion), Historical and Future Trends

7. Estonia Competition Profiling

7.1 Bilateral or Domestic Insurance Associations of Note

7.2 Market Share Analysis

7.3 Key Player Profiles

7.3.1 Industry Vertical, Position in the Value Chain, Market Demand Generating Factors)

7.3.2 Net Income

7.3.3 Strategies for Operation (Includes Innovations and Disruptions of note)

7.3.4 M&A

7.3.5 Country of Operation

7.4 Companies Covered (Not-Exhaustive)

7.4.1 Lloyd

7.4.2 Berkshire Hathaway

7.4.3 AXA

7.4.4 Allianz

7.4.5 Japan Post Holdings

7.4.6 Assicurazioni Generali

7.4.7 Prudential Plc

7.4.8 China Life Insurance

7.4.9 Ping An Insurance

7.4.10 Legal & General Group

7.4.11 Munich Re

7.4.12 Cyence

7.4.13 Lemonade

7.4.14 Oscar

7.4.15 PolicyGenius

7.4.16 Safeshare

7.4.17 SimpleSurance

7.4.18 SynerScope

7.4.19 Trov

Estonia Cyber (Liability) Insurance Market - Trends, Industry Competitiveness & Forecasts to 2022

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