Cyber insurance is becoming increasingly popular worldwide, yet recent research indicates businesses and government organizations continue to face major coverage gaps.In addition, some major U.S. cities have no cyber insurance policies in place, despite the potential costs, data loss and other damage commonly associated with cyberattacks and security breaches.The market is growing, and the litigation and fines associated with cyberattacks and data breaches continues to increase, FICO VP of Cybersecurity Solutions Doug Clare said. As such, more firms could invest in cyber coverage in the years to come.
Chubb Ranks First Among Cyber Insurance Providers
Chubb INA Group surpassed American International Group (AIG) and XL CatlinAmerica Group to become the top cyber insurance provider last year, according to American rating agency A.M. Best. The insurer wrote $284.4 million in cyber direct premiums last year, and the majority of these premiums were written for packaged policies.Furthermore, Hartford Insurance Group ranked first in terms of most cyber insurance policies held in force at the end of 2017, A.M. Best reported. Hartford held more than 500,000 cyber insurance policies in force at year-end.US Firms Are Investing in Cyber Insurance
The number of U.S. firms with cyber insurance has increased in the past year, according to a survey of security executives at 500 companies conducted by data analytics company FICO.Key findings from the FICO survey included:- The number of U.S. firms reporting they have no cyber insurance fell from 50 percent in 2017 to 24 percent in 2018.
- 70 percent of healthcare firms and 10 percent of financial services firms said they do not have cyber insurance.
- 32 percent of U.S. firms said their cyber insurance covers all risks.
- 26 percent of U.S. firms said their insurer based their premiums on an accurate analysis of their risk profile.
