We recently published our 2015 Cyber/Privacy Insurance Market Survey. The free 20 page summary article can be read here: Cyber/Privacy Insurance Market Survey 2015 Summary. To purchase the entire 147 page Report, which includes specific information about carriers, products, capacity, market focus, click here: Cyber/Privacy Insurance Market Survey 2015 Full Report.
This year’s Report includes products offered by 31 carriers, up from 28 in 2014. Newly added were ANV, Berkshire Hathaway, and Hanover. The Report estimates a current annual rate of Cyber insurance sales at $2.75 billion, up from $2.0 billion last year.
The Report notes that coverage for larger organizations, especially those involved in extensive retail and health care operations, are finding it more difficult to buy adequate limits at a reasonable price. Insurers are increasingly strict about adherence to cyber security and Payment Card Industry standards.
And yet, the small- to mid-sized insured has many insurance products competing for its business. Brokers are actively selling Cyber policies to their insureds, and more are buying than ever before.
This year’s Report included several new questions that have taken on increasing importance in Cyber coverage:
- In order to better understand whether the product is oriented toward U.S. insureds, non-U.S insureds, or global insureds, we add the question “Is Product Primarily Targeting Insureds Based in the United States, non-United States, or Both?”
- We more specifically asked about coverage availability for Consumer Redress Funds in the Data Privacy: Regulatory and Statutory Coverage Provided table.
- Because of the importance of PCI coverage and its increasing complexity, we added a new table to “Data Privacy: Payment Card Industry Coverage Provided” to ask about payment card industry (PCI) fines and penalties and whether fraud charges and/or card reissuance costs could be included.
- “Data Privacy: Remediation Costs Covered” now includes a question as to whether the costs of credit repair can be covered.
- The increasing interest and availability of Cyber-related Bodily Injury and Property Damage inspired a new table addressing “Third-Party Coverage: Bodily Injury and Property Damage.” Coverage for both direct and indirect causes of loss is described.
- Concerned that some cyber insurers exclude claims arising out of the insured’s alleged failure to maintain security standards, we added a question to our Exclusions tables.
A new feature in this year’s Report is insight by Cyber underwriters on market conditions for healthcare insureds. This confidential commentary is much appreciated and gives good insight into their current thinking. See the Report for further information.