Munich Re plans to expand its cyber-risk product line-up in response to growing demand as business awareness of the digital threat grows.

Market volume for cyber solutions will more than double to $US8-9 billion ($11.2-$12.7 billion) by 2020 from last year.

“As a global reinsurer, we accept the challenge of drawing up solutions for this new risk profile,” Board of Management member Doris Hopke said.

“Not to do this would be the biggest risk of all.”

Digital threats are unconventional because they are borderless and affect every business line, market and company, irrespective of size, Munich Re says.

The industry must design flexible solutions that offer more than traditional risk mitigation products.

“Protection against cyber risks could successively develop into an important field of business in its own right,” Ms Hopke said.