identity theft

As interest in cyber coverage from commercial organizations ramps up and concerns grow over the security of internet-connected devices, the insurance industry hopes to expand the market to individuals facing cyber risk.

While identity theft products have existed in personal lines for many years, several insurers have recently introduced coverage that responds to cyber extortion, breach notification costs, financial fraud, personal cyber liability, and cyber bullying. NAS Insurance, American International Group (AIG), and Hartford Steam Boiler (HSB) are among those companies targeting personal lines customers as potential buyers of cyber insurance. The industry may find itself boosted by the vulnerability-riddled smart devices, ransomware demands aimed at individuals and consumer privacy concerns.

Erin Ayers, Insurers see growth potential for cyber in personal lines market (April 10, 2017), available with subscription at Advisen Cyber Front Page News.

Security breaches in the US since 2005 now total over 6,000 and the first few months of 2016 have resulted in 10 percent more breaches than the same period in 2015, according to the latest data from the Identity Theft Resource Center (ITRC).

As of April 19, 6.2 million personal records have been compromised, ITRC said in a recent report, and the increase in theft of Social Security numbers appears to be propelling a wave of tax fraud. Since 2005, when ITRC began tracking security breaches, over 851 million records have been exposed.

Erin Ayers, 6,000 security breaches recorded since 2005; 2016 shows faster pace (April 28, 2016), available with subscription at Advisen Cyber Front Page News.

Advisen Ltd.

Transforming Insurance

Insurers See Growth Potential for Cyber in Personal Lines Market

6,000 Security Breaches Recorded Since 2005; 2016 Shows Faster Pace