OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, A.M. Best Senior Managing Director and Chief Rating Officer Stefan Holzberger reviews how cyber insurance fits into the rating process and how it is becoming an integral part of various organizations’ risk management. Click on http://www.ambest.com/v.asp?v=cyber217 to view the entire program.
“Presently, A.M. Best does not require companies to incorporate cyber modeling in terms of their underwriting or risk management,” said Holzberger. “The reason for that is the models themselves are still in the early stages of development. There are some practical applications currently available with these models and some companies that A.M. Best evaluates are already utilizing the models as an underwriting tool.”
Holzberger sees cyber insurance as, “a great opportunity for the insurance market as a whole, but because the underwriting tools are still in the early stages of development, insurance companies are adding this exposure onto their books very cautiously.”
“Once companies get better tools to underwrite, reserve and predict the profitability of a book of cyber business, that is when the market is really going to explode. A.M. Best expects to see a nice level of growth in 2017, as in 2016 over 2015, and that will carry forward into the coming years,” said Holzberger.
This in-depth interview and examination of the state of cyber insurance is featured in the March 2017 edition of Best’s Review. To view the series, titled, “The Cyber Unknowns,” go to http://viewer.zmags.com/publication/84c3d6aa#/84c3d6aa/4.
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