There has been significant commentary on the market for Cyber Risk insurance (see our prior post here), some positive and some commentary not so much. We provide Cyber Risk insurance to a wide range of small to medium sized organizations utilizing a range of insurance markets, and we see a very robust market for coverage. It does take some effort and expertise to navigate the market, and as a wholesale broker we support our retail insurance agency clients in providing cyber risk insurance. Our key points on the current market:
- Many insurers provide Cyber Risk Insurance
- Coverage is reasonably priced
- Cyber Risk Insurance can be comprehensive, but not all forms are
- Forms vary considerably and can be tailored to a customer’s needs
- Underwriting varies by insurer, with many insurers focusing on specific areas – some degree of specialization
- While there is very little in the way of credible loss statistics, underwriters are responding to incidents and learning fast
- Insurers are seeing claims
- We expect pricing to rise over time
- Increased underwriter focus on IT security (“cyber risk management”) is coming
Cyber Risk Insurance is an essential coverage for business of all sizes for protection from both criminal attacks and employee error; it should not be optional. Coverages vary widely and can be tailored to cover the cost of breaches, forensics, business interruption, crisis management and PCI assessments.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts. Review our expectations here.