The Cyber Insurance Market in Israel

Abstract

Cyberspace poses many challenges threats and risks which, with the development of technology, are increasingly affecting all of us in terms of the scope, frequency, damage, immediate effects and long-term consequences. All these impact many sectors. Cyber insurance is one of the tools for managing these risks. Indeed, the cyber insurance market is developing around the world, but in many countries, as well as in Israel, it has not yet reached its full potential. This study examined the cyber insurance market in Israel by analyzing the existence of a cyber insurance service among insurance companies and agencies. In addition, it examined the reference to this market by various experts in this field. All the above has been done with the aim of establishing the degree of maturity of the market in Israel. The findings of the study indicate that the cyber insurance market in Israel is not mature enough. Cyber insurance is not a popular product among companies to manage their cyber risks, mainly due to lack of information, knowledge, awareness among customers, insurance agencies, insurance companies, and government bodies. However, steps are being taken, mainly by Israel National Cyber Directorate (INCD), to empower insurance agents and their customers with relevant professional knowledge.