The History of Cyber Insurance 041316V1 - prowritersins.com · – Many take credit for for writing...
Transcript of The History of Cyber Insurance 041316V1 - prowritersins.com · – Many take credit for for writing...
TheLate90’s
• Thefirstcyber/internetpoliciesstarttoappearinthemarket.–Manytakecreditforforwritingthefirstcyberpolicy.
• SomeofthefirststandaloneproductsonlycoveredliabilityfromaHackofa3rd Party.
Early2000’s
• Laterversionscoveredbreachesoccurringattheinsured.– Theyhadmanyexclusions:• RogueEmployee• Regulatory• Fines&Penalties
– NoFirstPartyCoverage
Mid2000’s
• AddedCoveragefor1st Party– CyberBusinessInterruption– CyberExtortion– NetworkAssetDamage
• AddedsublimitforHIPAALiability
CASecurityBreachInformationAct
• EffectiveJuly1,2003• RequiresabusinessoragencythatconductsbusinessinCAtonotifyaffectedresidentsofCAofanybreachifpersonalinformationwasorisreasonablybelievedtohavebeenaccessedbyanunauthorizedperson.
CASecurityBreachInformationActcont.
• PersonalInformationmeansanindividualsfirstorlastnameincombinationwithaSocialSecuritynumber,driverslicensenumber;oraccount,creditordebitcardnumberinconnectionwithanaccesscodeorpassword.
Theresults
• Manystatesfollowinaddingsimilarlaws.• Thisresultedinnewcoveragesbeingoffered.• New1st PartyCoverages:– ITForensics,PR,CreditMonitoring/Repair,CustomerNotification.
• New3rd PartyCoverages:– RegulatoryDefense&Fines/Penalties
Late2000’s
• Manyofthenewcoverage’sofferedwereonlyavailablewithstrictsub-limits.
• Thismadeexcessplacementsdifficult.• Eachcarrierhadaverydifferentappetite• Eachcarrierhaddifferenthotbuttonissues• EachcarrierhadverydifferentviewsonCyberRisk.
2010’s
• Thenumberofcarrierswithstandaloneproductshasgrownorthof50intothe60’s
• 2014– YearoftheretailBreach• 2015– YearoftheHealthcareBreach• Productscontinuetoevolve• Carriershavechangingappetitesinresponsetobreaches
StateoftheMarketin2016
• Leadingcarriersinabetterpositionthanthosewithsmallmarketshare.
• Pricingisstillvolatile.• Coveragetermsstilldiffergreatly.• MovementtowardsprovidingmoreRiskManagementServiceswiththepolicy.
StateoftheMarketin2016cont.
• Therearemanydifferencesbetweensmallbusinessandlargeaccounts.– Asfarastherightmarket– Asfarasthenumberofquestionsasked– BroadCoveragevs.Narrow/Skinnycoverage
• Realexpertiseishardtocomeby.