EXPLORATION OF COMBINATION OF CYBER INSURANCE AND COMMERCIAL PROPERTY INSURANCE

Abstract

Along with the continuous advancement of digital transformation in various industries and fields in China, network assets and digital assets become common in the context of digital economy. In this process, increasingly frequent digital interactions have given rise to new types of cyber risks. As cyber insurance appeared late in China, most enterprise clients know little about it and thus are unlikely to accept transferring cyber risks through insurance. This results in a low take-up rate of cyber insurance. Moreover, commercial property insurance cannot meet the demand for transferring enterprise asset security risks in the context of digital economy because new-type assets, such network assets and data assets, are not covered by commercial property insurance. In light of these facts, this paper reviews the theoretical research and market expansion of cyber insurance and commercial property insurance, and discusses the feasibility of combining cyber insurance with commercial property insurance from the perspectives of market environment, legal environment, and ecosystem of cybersecurity. Then this paper expounds on the necessity of combining cyber insurance with commercial property insurance from the perspectives of market scale, objects of insurance and development of the insurance sector post COVID-19. At last, projections are made with respect to the market revenues, premiums and possible cybersecurity loss suffered by enterprises through hypothetical models and case studies to provide insights for the theoretical research and practical exploration of combination of cyber insurance and commercial property insurance in the future.