Cyber attacks are one of the main concerns for insurers, but they also present them with an opportunity to expand their offering

A hot topic has emerged at the World Economic Forum in Davos, Switzerland, where some of the most powerful businessmen and politicians in the world are discussing the future state of the world economy.

The topic is not the eurozone crisis, the terrorist threat from North Africa, or even global warming. Participants are talking about cyber attacks.

According to Gillian Tett, the highly respected Financial Times journalist who anticipated the credit crunch before it happened, some of the most powerful businessmen in the world are very worried at the current situation.

A large global bank chief said that he witnesses 15,000 attacks a day. All types of companies and organisations are targeted, from hospitals to utility companies.

A recent risk survey by the CII revealed that cyber threat is at the top of the agenda the risk agenda for insurers.

Yet, research undertaken today by Zurich reveals that only one in five companies has cyber cover. The cyber insurance industry is worth only £250m gross written premium in Europe, with half written in the UK. This figure is low and does not even match the UK solicitors’ professional indemnity market.

But make no mistake, cyber insurance will grow, possibly significantly. Should a global organisation be victim of a major attack, the subsequent publicity will scare many more companies, even SMEs, to take out cyber insurance. For example, will yesterday’s £250,000 fine of Sony by the Information Commissioner for compromising the information of millions of customers following a “preventable attack” encourage more companies to take out cyber insurance?

This is a great opportunity for insurers to prove their worth. Companies such as Zurich and AIG are well ahead of the game, with full 360 cyber products that deal with all eventualities, from the loss of business payment to public relations advice. But it is still unclear what the likes of Aviva and AXA are doing on the cyber front. Brokers can also benefit, but they need to learn about the products and be in contact with insurers that have a good offering.

Most insurers exclude cyber attacks from standard policies, so this product has to be bought separately. Perhaps, cyber insurance will not boom so much, but then it might, and no insurer should gamble by leaving this product out of their offering.

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