Research expert covering finance, real estate and insurance. The best of R&I and around the web, handpicked by our editors. Compliance with data security laws provides immediate benefits and reduces the likelihood of a data breach. You then have to determine which assets to insure, e.g., just high-valued assets, or moderate and high-valued assets. Businesses today move quickly. xref Cyber insurance - statistics & facts | Statista On one hand, we've seen some strong underwriting results from carriers leading to softening in some market segments. The third quarter increase was a 40 percentage point rise over the prior quarter, and the largest since 2015. Prices rose even as more than 60% of Marsh clients increased their retentions in an effort to minimize increases. It is clear that cyber risk is different from traditional risks. It constantly evolves and thus, it cannot be fully solved for. Butler says AmTrust EXECs underwriting philosophy is underpinned by core values developed back when the arm was a sponsored MGA, which allowed it to build a lean team of skilled and agile underwriters who were comfortable making decisions on their own. 0000090387 00000 n As cybercriminals continue to flourish and expand their attack scope, expect coverage to be significantly more expensive and . Cyber Coverage Explained: Sub-limits and Coinsurance At the same time, two, is balancing and being a responsible [financial] steward of corporate capital.. In a press release on December 12, AIG (American Insurance Group) released information on how the insurance giant is benchmarking and evaluating the cyber risk of its clients. We dont really sweep with a broad brush in terms of industry class or size, Butler said. Threat actors are demanding more and more in ransom over the years. Benchmarking Services | Marsh Applicants/insureds were required to provide extremely detailed information about network security controls and security calls (calls where the underwriter would interview the Head of IT for the organization) were routine. %%EOF Benchmarking is populated with historical purchasing data and the cyber market is relatively young. Of the 12 controls in Figure 7, five have been shown to have the greatest positive impact on reducing cyber risk exposure: While not exhaustive or foolproof, the adoption and proper implementation of these controls can add a layer of security to help prevent or mitigate typical attacks.
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