The German non-life insurance market is one of the biggest in the world but has some special legal framework and restrictions. The evolving cyber insurance market caused the German Insurers Association in 2014 to develop non-binding model terms for cyber insurance. In March 2017, the GDV published non-binding wording for cyber insurance for SMEs.

The model terms and conditions are designed for cross-sectoral, multi-line policies for cyber-risk insurance. It contains elements from traditional insurance products such as liability, property and employees’ fidelity.

Meanwhile a rising number of German insurers uses the model terms as a basis for their own cyber insurance product. German SMEs are increasingly dependent on IT, but often do not protect themselves well enough against hacker attacks.

This market briefing will aim to highlight the cyber- relevant peculiarities (legal environment) of the German cyber insurance market, illustrate the main considerations that led to GDV’s non-binding model terms and explore the essential model structure and terms.