Cyber/Privacy Insurance

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The Betterley Report: Cyber/Privacy Insurance Market Survey 2018

2018 Report Highlights

32

insurers analyzed

128

pages of charts

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:
  • 128 pages with 24 different kinds of charts comparing 32 of the most prominent insurers writing cyber and privacy liability insurance
  • An examination of how rates are evolving
  • A review of value-added risk management services currently being offered
  • 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
  • Details on how Corvus, a new middle-market entrant, is using advanced cyber-security risk management tools to better understand and manage insured's risks
  • An overview of Chubb's Cyber Index, an interactive source of data highlighting claims experience of Chubb's insureds
  • A look at how exposures to, and coverage for, hacked invoices is evolving
  • A focus on the areas where the market is broadening
  • Information on the written premium growth rates of some of the most prominent writers of cyber insurance
  • The impact that the vast number of breaches is having on the reinsurance market
  • An update on payment card industry (PCI) fines and penalties coverage concerns
  • 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—2018" 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: 128 pages of incomparably detailed charts comparing 32 of the leading cyber and privacy liability insurers. These comparison charts allow readers to see how each of the 32 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 26 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 32 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
HDI Specialty Policyholders with annual revenues up to $350 million. Coverage for larger firms available upon request. Primary focus on Industrial Manufacturers, Chemical and Pharmaceutical Industries Government entities, adult content, online gambling, retail, financial institutions, healthcare, colleges and universities U.S.
Capacity, Deductibles, Coinsurance, and Agent Access
Carrier Capacity Available Deductible or SIR
(Minimum & Maximum)
Is Product Available to Retail Broker or to Wholesale Only
Hanover $10 million (Primary
or Excess)
Minimum SIR: $5,000 (3rd party coverage) Appointed Retail Brokers
First-party Coverage: Direct Damage and Business Interruption
Carrier Direct Damage to Equipment Destruction of Data Virus Extraction Business Interruption Denial of Services
OneBeacon Full limit coverage is not provided, but a Hardware Replacement Expense Insuring Agreement is available for most Insureds. Coverage may also be available in the Property or Inland Marine products. Yes, coverage is available if the Information Restoration Expense Insuring Agreement is purchased Yes

Yes, may be available by endorsement

Coverage may be available in the Information Risk & Recovery products by endorsement
Yes

Your Objective Source: A Renowned Industry Expert

rick_betterley_186x175Richard 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 insurable risk, coverage, alternatives to traditional insurance, and related services to corporations, educational institutions, and other organizations 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. Mr. Betterley began his role with 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, privacy, intellectual property, and media insurance products.

More recently, Mr. Betterley created The Betterley Report Blog on Specialty Insurance Products, which offers readers updates on and insight into insurance products such as those covered in The Betterley Report. It provides him with a platform to more frequently and informally comment on product updates and newly announced products as well as trends in the specialty insurance industry.

Next Issue: August 2018

Private Company Management Liability Insurance Market Survey

The Betterley Report is distributed by International Risk Management Institute, Inc. (IRMI) and may be accessed by subscribers on IRMI Online. 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 to corporations, educational institutions, and other organizations throughout the U.S. 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

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