Cyber risk could become the next “mega-catastrophic loss” for the insurance industry, according to a recent report from Kroll Bond Rating Agency, which sounded an alarm on inconsistencies and confusion surrounding cyber insurance and recommended that only insurers with significant capital and expertise enter the business of underwriting cyber risk.
“While the industry is looking at cyber insurance as a possible growth opportunity, insurers must not lose sight of their own cyber security,” Kroll wrote in its report. “Late in 2015, the NAIC adopted a Cybersecurity Bill of Rights, designed to protect consumers. At that time, Commissioner Hamm said, ‘Consumers have a right to expect their personal, financial and health information entrusted to the insurance industry is secure.’
Read more at http://www.advisenltd.com/2016/02/02/cyber-insurance-markets-sustainability-questioned-by-ratings-firm/
Erin Ayers, Cyber insurance market’s sustainability questioned by ratings firm, Advisen News (February 2, 2016), available with subscription at http://www.advisenltd.com.
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