Property Casualty 360 posted a great article on cyber coverage this week – and we at PLUS Blog love a great article on anything PLI related. PLUS (or also), two of the experts quoted in the article spoke at our 2012 International Conference – we really love that.
From the article:
Standalone Cyber insurance is now a $1 billion market, according to Betterley’s 2012 Cyber/Privacy Insurance Market Survey, up 25 percent from $800 million in 2011. That still makes Cyber a small fraction of the total U.S. P&C marketplace; however, it does put the coverage in line with the $1.4 billion Employment Practices Liability insurance (EPLI) market—even though Cyber has been around only half as long.
“There is definitely a heightened awareness of the coverage today,” says Florence Levy, national practice leader with Aon Risk Solutions’ Cyber risk practice. Aon’s Cyber business grew about 30 percent over the past year by number of policies. Thomas Herendeen, vice president of underwriting at Philadelphia Insurance Cos., reports a 20-percent growth in the company’s Cyber customer base.
“More clients are looking, and we are seeing greater seriousness to their research,” says Robert Parisi, network security and privacy practice leader for Marsh. “Most of the accounts we take into the process of quoting are buying the coverage. Our book is growing commensurate with that activity.”
Betterley’s survey found a wide range of total premium among Cyber writers. Two carriers reported more than $50 million in premium; others were in the $10-$25 million range; most markets were under $5 million.
Business spans the spectrum of exposure, from high-risk financial institutions and health-care businesses to retail and manufacturing. Chubb won’t talk about actual premium volumes in its CyberSecurity product line, but Vice President Ken Goldstein says that account classes have been “across the gamut,” with average policy limits of $1-$5 million.
Check out the full article here.