A.M. BestTV: Data Drought Limiting Cyber Coverage Growth

OLDWICK, N.J.--()--In this A.M.BestTV episode, a report from the Deloitte Center for Financial Services (Deloitte) says the growth of cyber coverage is limited on both sides: Click on http://www.ambest.com/v.asp?v=deloitte317 to view the entire program.

Prospective insureds are not fully aware of their exposures and insurers have limited information with which to underwrite the risks they might assume.

“For insurers, data is their life blood, and right now there is so much that is not known about this risk,” said Sam Friedman, insurance research leader, Deloitte. “Without data, insurers have a hard time getting a handle on how to underwrite and price the risk.”

Adam Thomas, partner & principal, Deloitte & Touche, LLP, sees a disconnect between what the buyer wants and what the insurers are selling.

“Uncertainty is leading organizations to struggle with where they should be buying cyber insurance, particularly when they think about the fact that you can insure against reputational loss,” he said. “In many breaches that we’ve seen in the news, there’s a significant component of that. It is not just about the financial and business disruption implications of the cyber event.”

However, Friedman and Thomas agree that as breaches become more common, cyber insurance will continue to grow.

Recent episodes of A.M.BestTV include:

  • Insurers Face a Host of Risks, Led by the 'Risk of Inertia': Attendees to the Philly I-Day 2017 conference in Philadelphia, PA, cited technology changes, along with cyber, climate and health risks as issues the insurance industry needs to address: http://www.ambest.com/v.asp?v=phillyiday317.
  • As Data Gets Bigger, So Does Its Impact: Insurers at the RMS Exceedance 2017 conference in New Orleans, LA, said insurers' abilities to capture increasing amounts of data are leading to new ways to identify risk and focus on products: http://www.ambest.com/v.asp?v=exceedance2317nc.
  • Italian Insurers Challenged by Political Uncertainty and Banking Woes, Says A.M. Best Analyst: Alvise Argenton, financial analyst, A.M. Best, reviews a recent briefing that examines the operating environment for Italy’s insurers, which includes volatile political and economic environments, insurers’ relationships with banks as distribution arms and investment strategies: http://www.ambest.com/v.asp?v=italy317.
  • National Insurers in United Arab Emirates Return to Profitability, Face Challenges, Said A.M. Best Financial Analyst: Financial Analyst Thomas Bateman reviews a new report from A.M. Best that examines financial performance for 29 listed national insurers in the United Arab Emirates: http://www.ambest.com/v.asp?v=uae317.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com