Cyber Insurance Is Well-Positioned for Rapid Growth
“Cyber insurance was first developed in 1997 in response to the business community’s growing adoption of the Internet as a tool for commerce, said Steve Haase, CEO of INSUREtrust. “As technology has continued to evolve, so too have the risks…Cyber liability has emerged as a major issue in risk management.” Yet, cyber insurance has not been fully embraced by commercial clients.
The Insurance Information Institute (III) recently surveyed major U.S. carriers about cyber insurance, and 80% predicted dramatic growth in 2015.
Carriers stated that today’s cyber insurance market responds to breach response and data security. However, they predict that within five years, it will move to an “all-encompassing product for intangible assets and system availability.”
Some carriers anticipate that commercial insureds will want cyber coverage to include the intangible loss, any nonphysical damage giving rise to financial loss.
Underwriters are already considering the future of cyber insurance. With the rapid development of the Internet and connectivity – ranging from driverless cars to remote thermostat controls to refrigerators that are connected to, and managed through, the Internet – hackers can infiltrate larger systems more readily. Overall, underwriters are planning for new cyber exploits almost every day.
As more breaches occur, and experience and pricing become uniform, cyber insurance is predicted to become a widely distributed standard coverage. It’s important to learn more and develop an expertise about this coverage now. Proactive knowledge will enhance your consultative and diagnostic attributes so you can better serve your clients, educate them about the need for cyber liability, and cover their potential cyber risk exposures.
To learn more about cyber insurance, contact INSUREtrust, a Beyond Insurance special provider.