Market Information for Each Insurer Based on 3 Categories:
- Targeted Insureds by Size
- Targeted Insureds by Industry
- Prohibited
Insureds
Updates inside the full report include:
- 118 pages with 24 different kinds of charts
comparing 26 of the most prominent insurers writing cyber and
privacy liability insurance
- The addition of Allianz and a Hanover Surplus Lines
product to the comparison charts
- Information about pandemic-related coverage enhancements,
exclusions, and deductible adjustments from 20 insurers
- Reasons why ransomware claims are increasing
- Rate, deductible, and growth estimates from 9
insurers
- An examination of how tech-enabled cyber
products are gathering steam
- Updated premium volume estimates based on ISO
MarketStance analysis of NAIC data, combined with estimates of the London
and other alien markets
- A look at other types of cyber coverage being sought
after (i.e., beyond liability coverage)
- Analysis of how certain business agreements, and the
acceptance of responsibility for cyber losses within them, are
impacting small and midsized insureds
- A look at how exposures to, and coverage for, hacked
invoices is evolving
- The impact that the vast number of breaches is having on the
reinsurance market
- Sentiments toward crime, extortion, and business interruption
coverages from a cyber perspective
- An overview of data privacy coverage, including
limits available, triggers, types of data covered, and remediation
coverage
- A look at the difficulties inherent in the "failure to
maintain security standards" exclusion
Why The Betterley Report?
Agents and
Brokers—Sell more and grow revenue by pinpointing errors in
competitors' policies/proposals.
Risk Managers and Insurance Buyers—Identify, eliminate, or
avoid coverage gaps with coverage comparison charts.
Underwriters—Research competitors with quick policy
comparisons.
Attorneys—Keep up with year-to-year trends in policy form
development.
Consultants—Identify markets and match them up to your
clients' needs.
Imagine that you or your client suffers a crippling
data breach due to a previously unknown cyber vulnerability. Not only was the
private information of a vast number of customers compromised, but certain
denial-of-service elements of the attack kept the company’s systems either
completely down or running far less efficiently than normal for weeks after the
incident. Suddenly, you or your client is faced with determining how exactly
the attack happened, preventing similar attacks in the future, notifying any
affected customers, incurring expenses to get systems up and running properly,
and even potentially warding off any subsequent litigation.
- "What are the best insurance products available to
protect against this circumstance?"
- "How can financial losses be
minimized?"
- "How could my company (or my client) have been better
prepared for this liability?"
Depending on whether you are the risk manager, the agent or broker, the
consultant, or any other role, these are likely the questions you are asking
yourself. In today’s environment, in which business and the Internet have
become essentially inseparable, companies of all sizes and operating in any
industry are exposed to the types of cyber-liability exposures alluded to
above.
The "Cyber/Privacy Insurance Market Survey" edition of The
Betterley Report compares and contrasts the options available in the
insurance marketplace to address scenarios like this and sheds light on the
specific knowledge that can help any risk management and insurance professional
better address cyber and privacy liability exposures.
Following a general overview of the state of the cyber and privacy liability
insurance market, the report dives into the trademark feature offered in each
edition of The Betterley Report: incomparably detailed charts
comparing the leading cyber and privacy liability insurers. These
comparison charts allow readers to see how each of the insurers stacks up with
the others in terms of the following.
24 types of insurer comparison charts available in full
report:
These comparison charts allow readers to see how each of the insurers
stacks up with the others in terms of:
- Contact and Product Information
- Product Description
- Market Information
- Capacity, Deductibles, Coinsurance, and Agent Access
- Data Privacy: Types of Coverage and Limits Available
- Data Privacy: Regulatory and Statutory Coverage Provided
- Data Privacy: Payment Card Industry Coverage Provided
- Data Privacy: Coverage Triggers
- Data Privacy: Types of Data Covered
- Data Privacy: Remediation Costs Covered
- Data Privacy: Remediation Coverage Services
- Coverage Extensions and (Sub)Limits Available for Cyber
Insureds—Media Liability
- Security Assessment by Third-Party Requirements
- First-Party Coverage: Direct Damage and Business Interruption
- Coverage for Loss Resulting from State-Sponsored or Terrorist
Act
- Theft (First-Party) Coverage
- Theft (First-Party) Coverage—Deceptive Funds Transfer or Social
Engineering
- Third-Party Coverage: Bodily Injury and Property Damage
- Third-Party Coverage
- Claims Reporting, Extended Reporting Period, Selection of Counsel,
Consent To Settle
- Prior Acts
- Coverage Territory
- Exclusions
- Risk Management Services
Sample Market Information from Full Report
Below is a small sample of the information that is available for each of the
insurers via the 24 different types of charts included in the full report.
| Market
Information |
| Carrier |
Target Markets—Size of Insured
(in $U.S. of Annual Sales) |
Target Markets—
Industry |
Prohibited
Insureds |
Is Product Primarily Targeting
Insureds Based in the U.S.,
Non-U.S., or Both |
| The Hartford |
CyberChoice First Response for revenues <$100 million.
CyberChoice Secure for revenues >$100 million |
All industries considered |
Payment or data processors; for profit education; debt collectors;
defense contractors; adult content providers; blockchain and
cryptocurrency companies; tobacco; coal. |
U.S.-based |
| Capacity,
Deductibles, Coinsurance, and Agent Access |
| Carrier |
Capacity
Available |
Deductible or SIR
(Minimum & Maximum) |
Is Product Available to Retail
Broker or to Wholesale Only |
| e-Franchisor Suite |
$5 million (layering is available for higher limits) |
$25,000 |
Appointed Retail |
| First-party
Coverage: Direct Damage and Business Interruption |
| Carrier |
Direct Damage to
Equipment |
Destruction of
Data |
Virus Extraction |
Business
Interruption |
Denial of
Services |
| Zurich |
May be available by endorsement |
Yes |
Yes, reasonable and necessary expenses to minimize or reduce an
interruption of services |
Yes
|
Yes |
Your Objective Source: A Renowned Industry Expert
Richard S. Betterley, LIA, is the president of Betterley Risk Consultants
(BRC), an independent insurance and alternative risk management consulting
firm. BRC, founded in 1932, provides independent advice and counsel on matters
important to the commercial property and casualty insurance industry and its
customers, alternatives to traditional insurance, and related services
throughout the United States. It does not sell insurance or related
services.
Mr. Betterley is a frequent speaker, author, and expert witness on specialty
insurance products and related services. He is a member of the Professional
Liability Underwriting Society and joined the firm in 1975.
Mr. Betterley created The Betterley Report in 1994 to be the
objective source of information about specialty insurance products. Now
published six times annually, The Betterley Report is known for its
in-depth coverage of management liability, cyber-risk, technology, intellectual
property, and media insurance products.
Next Issue: August 2020
Private Company Management Liability Insurance Market Survey
The Betterley Report, your independent guide to specialty insurance
products, is a series of six comprehensive reports published annually by
Betterley Risk Consultants and distributed by International Risk Management
Institute, Inc. (IRMI).
The Betterley Report may be accessed by subscribers on IRMI Online
or Vertafore ReferenceConnect. To purchase a subscription, call IRMI Client
Services at (800) 827–4242 or learn more on IRMI.com.
Betterley Risk Consultants is an independent insurance and alternative risk
management consulting firm. Founded in 1932, it provides independent advice and
counsel throughout the United States. It does not sell insurance nor provide
insurance-related services.
Betterley Risk Consultants, Inc.
235 Forest Lake Rd. • Friendship, Maine 04547
Phone (774) 262–3460
email: [email protected]
The editor has attempted to ensure that the information in each issue is
accurate at the time it was obtained. Opinions on insurance, financial, legal,
and regulatory matters are those of the editor and others; professional counsel
should be consulted before any action or decision based on this matter is
taken. Note: all product names referred to herein are the properties of their
respective owners.
The Betterley Report is published six times yearly by Betterley
Risk Consultants, Inc. This material is copyrighted, with all rights reserved.
ISSN 1089–0513