Insurance Brokers Find Cyber Coverage Complex
While the cyber insurance market is booming, insurance brokers find cyber coverage complex.
Customers want to either get a cyber policy for the first time or boost their coverage through higher limits and more endorsements.
Insurance companies are very eager to sell various forms of it.
But that does not mean buying and selling cyber coverage is easy. As I explain in my recent Leader’s Edge article, “Confusion Reigns,” cyber insurance is going through the growing pains of a burgeoning insurance line.
Since the policies offered by 45-plus insurers are not standardized, the market offers a myriad of potential endorsements that range from data breach coverage to reputation damage to cyber extortion. This makes cyber coverage complex.
…agents and brokers have to carefully comb through
each policy to ensure
the coverage matches the customer.
And while there is growing demand for higher limits of insurance protection, agents and brokers sometimes have to layer coverage for their customers while keeping a close eye on various exclusions.
Because brokers and agents find cyber coverage to be complex, it also means they have to carefully comb through each policy to ensure the coverage matches the customer. And while insurance buyers should always be well informed about the coverage they are buying, this is especially true for cyber coverage.
I hope you enjoy it! Also, if you want to read more, check out my Contingencies article, “Plugging the Data Breaches.”
Note: In July, I will be publishing a new article that looks closely at the actuarial challenges of cyber insurance. I’ll let you know when my article is published, as I always do. 🙂
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