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Allianz records more cyber damage in 2021: it’s ‘cautious’

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(Bloomberg) — At Allianz SE, the number of cyber claims continued to rise last year. Interest in policies is strong, but the group is more cautious about signing contracts. Customers are demanding more IT security and higher deductibles.

“Cyber ​​risks and losses are increasing,” Joachim Müller, head of the industrial insurance division Allianz Global Corporate & Specialty (AGCS), said in an interview with Bloomberg. Last year, AGCS was involved as an insurer in 1,091 cyber claims, compared to 1,069 in 2020 and just 72 in 2016. These policies were first offered in 2013.

The demand is “extremely strong”, the AGCS premium volume is in the direction of 200 million euros, according to Müller. However, AGCS is “cautious and disciplined” when it comes to entering into contracts. The amount of insurance you provide per customer in 2022 will remain at the level of the previous year. The policies are offered primarily to all customers with whom AGCS also does business in other areas.

AGCS is in an intensive dialogue with customers about how they can best protect themselves from attacks. “Gone are the days when companies bought insurance against cyberattacks instead of investing in attack protection technology themselves. Both have to go hand in hand,” Müller said. He expects clients to invest in IT security and deductibles.

According to Müller, a government shield against cyber risks may be necessary in some areas. “Cyber ​​damage is a potentially systemic risk that can no longer be covered solely by private insurance for certain scenarios,” she said. “Here you may also need to think about a government backstop if, for example, critical infrastructure is affected.”

More stories like this are available at bloomberg.com

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