Best’s News & Research Service - July 12, 2017 01:25 PM (EDT)
A.M. BestTV: Cyber Coverage Goes It Alone
- July 12, 2017 01:25 PM (EDT)
Oldwick //BestWire// - In this A.M.BestTV episode, Fred Eslami, senior financial analyst, A.M. Best, discusses a recent Best’s Special Report that examines how more insurers are writing cyber coverage on a stand-alone basis, as opposed to packaging it with other products. Click on http://www.ambest.com/v.asp?v=cyber717 to view the entire program.
“The NAIC actually introduced a supplement in 2015, which basically had two sections in it,” Eslami said. “One was cyber security, and the other one was identity theft. A.M. Best’s special report is exclusively based on the cyber security information that the companies provided. This is only relevant to U.S. companies.”
Eslami also spoke about some of the advantages of writing this coverage on a stand-alone basis.
“The transition from packaged to standalone is a positive one, because stand-alone allows companies to define their policy languages better, to actually define the limits more accurately,” he said. “Ultimately, it would help them to achieve a reasonable pricing and reserving. Furthermore, the information that can be gained from that would help the modelers to refine their modeling tools, which would ultimately result in better aggregation, and hopefully, better risk management in general.”
To access a copy of this Best’s Special Report, titled, “Cyber Line Expected to be One of the Leading P/C Growth Areas,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=263055 .
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