The Cyber Risk Insurance Market is growing fast and is almost as large at the Employment Practices Liability (EPL) insurance market according to a Property Casualty 360 recent article (see here). Some key points:
- Cyber Risk premium increased 25% in 2012
- Cyber Risk is a $1 billion market (EPL is $1.4, leaving out the EPL embedded in D&O)
- Claims are ocurring
- A typical carrier loss is $200,000 (but the average is much higher, skewed by some very large losses)
- Claims costs include direct financial loss and fines/penalties in addition to breach notification costs
- Employee negligence, such as lost portable media, remains an important source of loss
- The market remains competitive, with most pricing flat. Accounts with exposure or claims are seeing increases and are harder to place.
Today organizations of all size buy Cyber Risk Insurance and we can enhance your ability to sell the coverage. Cyber Risk Insurance is an essential coverage and is not difficult to explain to potential clients, but the details are complex. As a wholesale broker, we provide Cyber Risk Insurance to all types organizations through retail insurance agents and brokers.