The Equifax breach. A new password notification from Twitter. The list continues to grow for cyber attacks on business and government in the U.S. As a result, cyber insurance is becoming a critical cog in the fight.
The purchase of cyber insurance is proof. The National Association of Insurance Commissioners (NAIC) says cyber insurance was the fastest-growing line of insurance in 2017. Packaged policy premiums almost tripled from 2016 going up from $416.8 million to $1.1 billion.
The number of claims and the occurrence policies in-force purchased jumped a whopping 71%.
Standalone premiums jumped 7%. Premiums went from $920.7 million to $985.6 million. The occurrence of policies in force fell by 12% and the number of claims-made policies dropped by 33.3%.
The loss ratio for the line in 2017 was about 30%.
The importance of such insurance has been noted by business not only in the purchase of policies but in the ranking of what business worries about. Allianz’s 2018 poll ranked cyber-attacks as number-two.
It was 15th five years ago.
PricewaterhouseCoopers (PwC) worried that the industry has underpriced the risk when thinking about how often these incidents occur. In its report, PwC said, “The inevitable market-turning event will separate carriers that have sufficient risk management, underwriting processes and capital in place from ones that do not.”
Meanwhile, here are 2017’s top writers by direct written premium:
1 AXIS — $326,845,000
2. Chubb — $316,253,000
3. AIG — $335,038,000
4. XL Group — $177,879,000
5. Travelers Companies — $119,133,000
6. Beazley Insurance — $95,007,000
7. CNA Financial — $73,127,000
8. BCS Financial — $69,899,000
9. Liberty Mutual — $60,013,000
10. Zurich Insurance Group — $43,040,000
Source link: Insurance Information Institute