Associated Problems
Despite the benefits, there are some problems associated with this kind of insurance. One is that, insurance companies do not have sufficient actuarial data as this product is recently developed by the insurance industry. Because of this, insurers fail to estimate the amount of premium that must be charged so that in case of an event, the insurer has enough finance for claim settlement. Secondly, insurers fear "cyber-hurricanes". This is a term used for situations when excessive number of claims arise due to a security breach. Such situations are difficult to manage by the insurer and may drain them out completely