According to a June 27 report by China News Service citing Japan's Kyodo News, insurance that compensates for losses caused by cyber attacks has recently gained popularity in Japan. The three major property insurers signed more than one thousand policies in total in fiscal 2016, more than triple the previous year. As global losses from cyber attacks keep mounting, small and medium-sized enterprises are also becoming more vigilant, and the market is expected to expand further.

        The report noted that cyber insurance covers compensation for information leaks caused by external attacks as well as the cost of repairing damaged equipment. Tokio Marine & Nichido Fire Insurance was the first major domestic insurer to launch such a product in February 2015. Its sign-ups in fiscal 2016 grew to about three times the level of the previous year. The company provides policyholders with free diagnostics of their defenses against cyber attacks, and urges them to raise security awareness by estimating their maximum potential losses.

        Sompo Japan Nipponkoa's sign-ups from October 2016 to March 2017 grew fourfold from the same period a year earlier. Last October the company launched a cyber insurance product dedicated to small and medium-sized enterprises, with premiums lower than those of products for large corporations, lowering the threshold for coverage.

        MS&AD Holdings' sign-ups in fiscal 2016 also rose about 2.7 times from the previous year. To help avoid losses from "targeted attack emails", the company also offers free training to employees of small and medium-sized enterprises.

        According to the NPO "Japan Network Security Association", the cyber insurance-related market in fiscal 2017 is expected to reach 15.6 billion yen (about RMB 950 million). It is reported that since cyber attacks struck countries around the world in mid-May this year, the volume of inquiries received by various companies has been increasing.

Source: China News Service, 2017-06-27