Cyber Underwriters Dispel Myths About Pricing, Risk Assessment

Nick Economidis, underwriter at Beazley, wants to dispel a myth.

Speaking at Advisen’s Cyber Risk Insights Conference, he explained that underwriters are not “trying to measure individual companies’ risk and come up with a special price just for them.” He referred to models that provide an estimated cost for a risk type and size, based on average losses and probable maximum losses.

His message to the sold-out audience: “We want to kick out bad risks. We look at the general model price and adjust it based on the quality of risk.”

Read more at http://www.advisenltd.com/2016/05/23/cyber-underwriters-dispel-myths-about-pricing-risk-assessment/

Josh Bradford, Cyber underwriters dispel myths about pricing, risk assessment (May 23, 2016), available with subscription at Advisen Cyber Front Page News.

Data-Incident Trends Revealed by BakerHostetler Report

Humans still account for nearly a quarter of all data security incidents, but an analysis of more than 300 incidents by one law firm revealed the leading causes of cases in 2015 was phishing, hacking or malware.

The new report from BakerHostetler appears to confirm several other observations from within the cyber landscape that phishing and malware are becoming increasingly prevalent. While human error ranked as the leading cause of incidents in 2014, in 2015 employee action/mistake dropped to second at 24 percent.

Read more at http://www.advisenltd.com/2016/04/04/data-incident-trends-revealed-by-bakerhostetler-report/

Chad Hemenway, Data-incident trends revealed by BakerHostetler report (April 4, 2016), available with subscription at Advisen Cyber Front Page News.

Cyber Ransom: It’s Covered, For Now

SAN FRANCISCO—Ransomware may be the hot-button issue within the cyber landscape and, for the time being, ransom paid to hackers is covered by insurers.

From Advisen’s Cyber Risk Insights Conference here earlier this month, Samantha Riley, partner at Nicolaides Fink Thorpe Michaelides, said she has handled a “huge uptick” in claims on behalf of insurance carriers, who are paying out the claims under cyber extortion coverage.

Confirming Riley’s observation, Mickey Estey, senior vice president of E&O, cyber and media at RT ProExec of RT Specialty, said insurers have paid in the past with “not a lot of dispute.”

Read more at http://www.advisenltd.com/2016/03/15/cyber-ransom-its-covered-for-now/

Chad Hemenway, Cyber ransom: It’s covered, for now (March 15, 2016), available with subscription at Advisen Cyber Front Page News.