This newspaper (chinatimesnet.CN) reporter Hu Jinhua reports from Shanghai.
With the surging tide of the global digital economy, China's data element market, which is expected to be as large as one trillion yuan, is giving birth to innovative insurance products, and many property insurance giants have entered the field of developing and designing product nuggets.
On January 29, CPIC Property & Casualty Suzhou Branch and Zhongke Wisdom (Suzhou) Technology issued the country's first data element circulation security insurance, which integrates "data security risk reduction services" and "financial compensation services", filling the gap in digital risk protection of traditional insurance.
The comprehensive insurance for the security of data element circulation launched this time covers three stages: pre-prevention, in-process protection and post-event compensation, and comprehensively improves the user's data security protection capabilities through measures such as risk assessment, system reinforcement, real-time monitoring and emergency response. At the same time, in order to meet the needs and risk preferences of different users, the insurance program also provides flexible coverage and insurance amount selection, so that users can choose the most suitable insurance plan according to their actual situation, and the customized insurance service model will provide users with more comprehensive and personalized data security protection. The relevant person in charge of CPIC property insurance said in an interview with a reporter from the China Times.
It is understood that this is not the first time that the industry has launched insurance products for data elements, and many leading insurance giants have already laid out. On January 26, China Life Property & Casualty Insurance cooperated with an institution named Yongxin Zhicheng to jointly build a digital security insurance business; On January 4, Hangzhou Xiaoshan District successfully landed the first data intellectual property infringement loss insurance in the jurisdiction, which was signed by the Xiaoshan Branch of Chinese Property Insurance Company and the Advanced Research Institute of Information Technology of Peking University in Zhejiang Province, providing protection for the data legally owned by the insured and obtaining the data intellectual property registration certificate in the data intellectual property registration system and evidence storage platform. On May 11, 2023, Chinese successfully issued the country's first data intellectual property infringement loss insurance; During the same period, Western Digital Trading Center cooperated with Ping An Property & Casualty Insurance Co., Ltd. Chongqing Branch of China to launch a customized insurance service for data transactions, and named it Data Security Insurance (Western Data Center) ......
The digital economy has given rise to a new market for insurance
Data elements are an important part of the digital economy, and their value in the operation of the national economy is becoming increasingly significant, and there are potential security risks such as data leakage, loss, damage, and compliance in the process of circulation. In order to effectively control the risks in the process of data element circulation, Zhongke Wisdom has developed a complete data element circulation protection technology based on quantum security technology to escort data circulation, and has accumulated a series of representative application scenarios in long-term operation. Zhongke wisdom related people said.
It is worth mentioning that CPIC Property & Casualty Suzhou Branch and Zhongke Wisdom have previously reached cooperation on the protection of residents' personal information, and will actively explore data security service solutions for connected car scenarios and cybersecurity insurance solutions for public security big data security circulation in the future.
Based on the quantum-secure data circulation scheme, data element circulation security insurance can provide policyholders with active risk management services that integrate prevention and insurance. This innovative insurance type enhances the security capability of the 'storage + transmission' of policyholders' data, and provides policyholders with quantum-encrypted data security services to resist malicious attacks, thereby reducing the incidence of data network security accidents and preventing the expansion of losses. CPIC Property & Casualty pointed out.
Insurance products for the data element market are first based on data that can be circulated and traded, and data elements are bound to face various risks in the process of circulation and trading, just like commodities, and data element insurance products are born to prevent risks. The market unanimously expects that the transaction scale of China's data asset elements will reach the trillion level, and it is worth looking forward to how much of the premium market can be bred in this. On January 30, Chen Liang, head of the digital technology department of a large property insurance company in Shanghai, told this reporter.
According to Fan Jiajia, an associate researcher at the Institute of Information of the Shanghai Academy of Social Sciences, the main security risks faced by the circulation of data assets are the risks of leakage, tampering and abuse, and the protection of related links involves the protection measures of the data itself, disaster backup systems and other links, and data security insurance is also a way to control the risks in the process of data circulation and reduce security losses.
Chen Liang revealed that one of the most critical links in the development and application of data security insurance and even cybersecurity-oriented insurance products lies in the quantification of security risks. It is understood that in recent years, the security industry and the insurance industry have promoted the development of relevant practices, including the establishment of relevant security risk event databases, case databases, and the construction and improvement of risk quantification models.
Risk quantification is indeed a difficult problem to solve in the field of data, because after a security incident, if the insurance company needs to clarify where the problem occurs, it must track and trace the entire data circulation process, which requires the use of blockchain and other technologies to record from the data source; In addition, the amount of insurance and compensation needs to take into account the importance and affordability of enterprise data, so the further promotion of related products depends on the accumulation of more practical experience. Fan Jiajia said.
Premiums and technology imagination
According to the "Cyber Security Insurance Research Report" of the National Industrial Information Security Development Research Center, the scale of cyber security insurance premiums in China will reach 1 in 2022400 million yuan, China's cyber security insurance market is still in the exploratory period, and there is huge room for growth in the future. In July 2023, the Ministry of Industry and Information Technology (MIIT) and the State Administration of Financial Supervision and Administration (SAMR) jointly issued the Opinions on Promoting the Standardized and Healthy Development of Cybersecurity Insurance. As China's first guiding document for the development of cyber security insurance, the Opinions provide important guidance for the standardized and healthy development of China's cyber security insurance industry, and also mark an important step in the development and promotion of China's cyber security insurance industry.
In August 2023, the country's first batch of data insurance solutions will be listed on the Shenzhen Data Exchange, focusing on data network security, data product intellectual property protection, network security software quality and other fields, providing a "shock absorber" for enterprise data security risks, and also helping the industry to innovate the "product + insurance" model, breaking the shackles of data element marketization, and promoting the data trading market to run at a new speed and to a new height.
The data insurance solution will focus on solving various development pain points, including data security, data product intellectual property rights, and the quality and security of the first version of software. Among them, the comprehensive data security solution will provide all-round protection for the first-party loss risk and third-party compensation liability faced by enterprises in the process of data security and network security in the production and operation process; The plan will also protect the intellectual property rights of data products, protect the legitimate rights and interests of data product intellectual property reporting entities, protect the legitimate rights and interests of data element market participants, and promote the open flow and development and utilization of data; In view of the quality and safety of the first version of the software, the plan will protect the loss or liability of the user unit if there are quality defects after acceptance, resulting in accidents in the use and operation of the user unit. At that time, a person related to Chinese insurance said.
On January 4 this year, Xiaoshan District, Hangzhou City, successfully landed the first data intellectual property infringement loss insurance in the jurisdiction, which also provided the scenario of the above-mentioned data insurance scheme. The reporter learned that once the insured enterprise encounters a data security incident, the insurance can timely compensate the enterprise for the financial needs of the enterprise in terms of data intellectual property infringement losses, emergency response costs, data recovery costs, rights protection costs, etc., effectively reducing the cost of enterprise data recovery.
Insurance can be combined with decentralized storage to launch data security insurance for decentralized storage products, in short, this is to provide a data assurance service for web3 users, users store data in decentralized storage projects, and users who have purchased data security insurance can alleviate users' concerns about data security management, thereby encouraging more users to adopt decentralized storage. In the event of accidental loss, damage, or hacking of data stored in decentralized storage, users will be entitled to compensation accordingly. For the data asset insurance program launched by property insurance giants, an overseas expert on web3 technology Mar*** told this reporter.
Mar*** revealed that in fact, the global insurance industry has begun to explore applications in the blockchain field for a long time, dating back to Etherisc, the first decentralized insurance platform launched on Ethereum in 2017; The turning point was the launch of Nexus Mutual, the first insurance protocol specifically built for the DeFi (Decentralized Finance) ecosystem, in 2019, especially as many DeFi applications have experienced security incidents that have resulted in billions of dollars in losses, and blockchain DeFi insurance has developed rapidly, which can rebuild market confidence among investors and institutions by mitigating the inherent risks of DeFi. to ensure that more web3 users are widely involved in DeFi.
Decentralization is global, and although the enforcement of insurance can be carried out by smart contracts, the rights and obligations of insurance still need to be defined by law, but the legal and regulatory requirements for data storage and data protection vary from country to country, and determining the scope of liability and compensation for data storage insurance can be very complex. A consensus needs to be reached on the definition of data damage on the decentralized network, so as to avoid the information asymmetry between users and project parties and make the process of compensation and accountability difficult. Mar*** said.
Mar*** also pointed out that the global traditional insurance market is still large and has already witnessed the rise of DeFi insurance, which makes decentralized insurance a small but promising area in the blockchain industry. In the future, Web3 data storage insurance can greatly enhance users' trust in decentralized storage, and the development of decentralized storage data insurance will definitely require concerted efforts in technology, law, regulation and business, and more innovative use cases of decentralized storage insurance will emerge in the future.
Editor-in-charge: Xu Yunqian Editor-in-chief: Gong Peijia.