Cybersecurity » Cyber Insurance: How The Carriers See It

Cyber Insurance: How The Carriers See It

October 20, 2014

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Cyber insurance has been available for years – AIG has offered it since 1999 – but it’s clearly a product whose time has come. AIG’s sales increased 30 percent a year for the last two years and are expected to do so again in 2014. A number of other major carriers are also in the market, as the number of cyber security incidents continues to rise – by 48 percent this year, to 42.8 million, according to a PricewaterhouseCoopers LLP survey, with the average loss for a large company increasing to $5.9 million, from $3.9 million in 2013. It’s true that hackers have become more sophisticated, but many of the incidents are the result of human error, sometimes even just losing a laptop, says AIG’s head of professional liability. Meanwhile, some eminent old security men – including President George Bush’s first head of homeland security, Tom Ridge, and some former FBI employees – are now working with carriers.

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