Cyber-insurance products on the rise – buyers kept in the dark
Cyber-insurance products on the rise – but buyers kept in the dark
There has been a rapid development in the range of cyber-insurance products available to companies, with price becoming significantly more competitive, Airmic research has found
The report, unveiled at the annual conference, finds that the main deficit is one of communication; a lot of buyers have not been made aware of what is available.
The research found that organisations are looking more carefully than ever at the range of cyber risks, both in terms of first-party and third-party risk exposures. “Cyber-insurance is now a more cost-effective risk transfer mechanism than was previously the case,” it concludes.
“We found that many buyers were simply unaware of the speed with which the insurance market has developed, which indicates the need for improved dialogue between risk managers, their brokers and underwriters,” said technical director Paul Hopkin.
The report urges members to develop internal relationships, especially with their IT departments, so that cyber-risks can be effectively managed. “Risk managers need to play a more influential role in the management of these risks and, to do so, should be consulted at an early stage about any IT developments within their organisations,” said Hopkin.
The report found a typical limit of indemnity to be between £1 million and £5 million in the UK for the primary layer, with capacity of up to £100 million available. In the United States, primary layers are around $10 million, with greater total capacity available.
Airmic now plans further discussions with its members and partner organisations about future product developments.
"Risk managers need to play a more influential role in the management of these risks and, to do so, should be consulted at an early stage about any IT developments within their organisations"
Paul Hopkin
