The PRC Cybersecurity Law, which came into force on 1 June 2017,
will have a significant impact on companies doing business in
China. Insurers are no exception to this. In this article we
discuss how the new cybersecurity law will impact the insurance
sector.
1. Is it likely that China's cyber insurance market
"take-off" now that a legal framework is in place similar
to the US and EU?
Although it is early days, Clyde & Co expects to see more
products coming to market which will specifically cover
cybersecurity-related risks. These are likely to include products
that insure against losses arising as a result of cybersecurity
breaches, such as the cost of rectifying damage to computer
networks, business interruption losses and so on, and products that
indemnify the insured for the cost of defending criminal and civil
proceedings arising out of a failure to take proper precautions to
safeguard data from cyber threats.
