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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 08, 2016 02:59 PM (EST)
In this A.M.BestTV episode, A.M. Best Senior Financial Analyst Fred Eslami explains how the company continues to monitor and focus on insurers’ treatment of cyber liability exposures. Click on http://www.ambest.com/v.asp?v=cyber216 to view the entire program.
A recent Best’s Special Report, titled “A.M. Best’s View on Cyber-Security Issues and Insurance Companies,” states that while A.M. Best still considers natural catastrophe losses to be the primary threat to the financial strength and credit quality of property/casualty insurers, the increasing frequency and severity of cyber attacks and difficulty in measuring the risk pose a substantial threat to the insurance industry.
“In the next few years, there are going to be nearly 50 billion devices connected to the Internet; therefore, expectation is that frequency and severity are going to increase,” said Eslami. “With this realization, companies spent $70 billion in 2014 and $75 billion in 2015 to protect and address cyber risk,” continued Eslami.
Eslami said the challenges facing companies to increase their cyber protection include a lack of results-oriented data to support pricing and reserving, an evolving regulatory and legal environment and rapid transformation of legacy systems.
To access a copy of the special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=243994 .
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A.M. Best is the world’s oldest and most authoritative insurance rating and information source.