The Wall Street Journal (paywall, here) concludes that the pace of cyber attacks is driving a surge in the sale of Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage), while the Insurance Journal draws the opposite conclusion (see here).
According to Insurance Journal, “the pace of sales seems to be slowing.” This according to a survey that concludes the percentage of buyers has increased to 65% in 2016, up only 7% from 2015.
- Some carriers are doubling their Cyber Risk Insurance books each year
- Prices will rise 5%-10% next year
- Retail & healthcare will see the larges price increases
The WSJ article also notes that “cyberinsurance plans are typically narrow and only apply to data breaches.” (paywall, here). This is not correct. We negotiate Cyber Risk Insurance coverage every day for medium sized and small businesses, and comprehensive Cyber Risk Insurance is available for all organizations (see here & here), with coverage going well beyond data breach.
Cyber Risk Insurance is an essential coverage for businesses 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 business interruption, credit card assessments, ransomware, social media losses and crisis management in addition to data breach costs.
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 Risk). We excel at hard to place accounts, particularly comprehensive Cyber Risk Insurance.