A global rise in the use of smart devices in the home is likely to result in increased cyber risk, according to research by Allianz Global Corporate and Speciality (AGCS).
The report states that, with the growth of the Internet of Things, the public will soon see technology become embedded in devices around the home, such as heating, lighting and entertainment systems.
But while the new movement of networked technology will bring a swathe of benefits to consumers, it also brings increased potential for ‘physical loss or data breaches’ - especially when there is a reliance on outdated operating systems and unsupported software.
The study found that, with an average of 100,000 global security incidents per day, the mounting number of data breaches and cyber attacks is underpinning exponential growth in the cyber insurance market.
Nigel Pearson, global head of fidelity at AGCS, said in the report: “Cyber criminals are already migrating to new platforms, such as smart devices, with mobile wallets increasingly being used for financial transactions.
“Understandably, there are concerns around potential exposures created, as more sophisticated attacks occur.”
The report came just days before the publication of new data from PwC which revealed that the cyber insurance market is expected to be worth at least $5bn in annual premiums by 2018 and $7.5bn by the end of the decade.