Cyber Insurance Market in Israel – What is the Official Policy?

Abstract

Since 1997, with the first Internet security liability policy (Granato and Polacek, 2019), the cyber insurance market has evolved. But despite the importance of cyber insurance as one of the tools for organizations to manage their cyber risks, there are still problems relating to this market which have persisted over the years, mainly in aspects of the lack of information and knowledge that affect market maturity and the willingness to use it. These problems have been addressed by academic research. This study seeks to examine Israel's policy on cyber insurance based upon official policy documents and academic papers on Israeli cyberspace, while emphasizing that in Israel, as in other countries, cyber insurance is still in the process of implementation. The conclusion of the study is that the Israeli cyber insurance market is in its early development and action must be taken to make the relevant information accessible and to create activities of guidance and regulation by relevant government agencies. However, the study indicates that the relevant agencies do understand the importance of this market and its current problem, and already initiated several initiatives to develop and promote the cyber insurance market in Israel.