Increased digitisation and interconnectivity have made cyber threats “one of the top global perils” of this year and beyond, according to research group IDC Financial Insights.

This may spell bad news for businesses, governments and consumers, but it provides “tremendous opportunities for insurers to capitalise on this largely untapped market”.

However, IDC Financial Insights says insurers are “highly sceptical” of the cyber-insurance market.

Reasons include lack of historical data for underwriting and limited understanding about exposures.

Senior Research Analyst Sabitha Majukumar says inadequate coverage, high premiums, too many exclusions, restrictions and uninsurable risks are typical characteristics of cyber insurance products currently on the market.

“We strongly believe insurers should consider the available evolving tools and technologies in the cyber-risk exposure-monitoring and assessment space,” she said.