As digital technologies have come to play a bigger and bigger role in our lives, cyber attacks having been growing in their scope, prevalence and variety. This creates many new pressures and challenges. This includes challenges for property insurers.
Cyber coverage is among the coverage such insurers may provide businesses and other policyholders. Given the damage cyber attacks can cause, claims related to such coverage could get quite high. So, what happens with the cyber insurance policies they provide can have major impacts on the financial situation of property insurance companies.
The unique and evolving risks related to cyber coverage raise many questions for the property insurance industry. These include:
- How can risk be gauged when offering cyber insurance policies?
- How should risk be managed when it comes to cyber coverage?
- What types of policies should be offered related to cyber coverage?
- What things should, and shouldn’t, be included in standard cyber insurance policies?
Some feel that the time has come for insurers to take definitive action when it comes to these issues. One wonders how the property insurance industry will tackle these questions and the challenges connected to them in the future.
What actions are ultimately taken on this front could impact many things. This includes what sorts of issues, including legal issues, are likely to arise for property insurers when it comes to their cyber insurance policies.
What do you think the future will see when it comes to cyber coverage here in Louisiana and in other parts of the country?
Source: Insurance Journal, “Cyber Risk Is Putting Pressure on Property Insurance Underwriters,” Elizabeth Blosfield, Nov. 6, 2017