OLDWICK, N.J.--(BUSINESS WIRE)--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.
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