A.M. BestTV: Cyber Coverage Is a Tale of Two Markets, Say A.M. Best Analysts

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FOR IMMEDIATE RELEASE

OLDWICK - JUNE 22, 2018 11:26 AM (EDT)
In this ^A.M.BestTV episode, Fred Eslami, associate director, and Bobby Skrabal, industry analyst, A.M. Best, said take-up rates, prices and expectations for cyber coverage differ between large and medium-to-small organizations. Insurers are still developing pricing and coverage strategies. Click on http://www.ambest.com/v.asp?v=ambcyberreport618 to view the entire program.

“The market is really bifurcated in terms of the size of an organization,” said Skrabal. “The take-up rates for national accounts are somewhere above 50%. For small- to medium-sized enterprises (SME), it is in the 10% to 30% range.”

Skrabel also said that due to the mature nature of the national accounts, “They are better able to quantify the impact that a cyber-event could have on their business, while some in the SME market do not think they are going to be targets of attacks. They think that only bigger companies are hacked.”

Eslami addressed the issue of how A.M. Best view’s cyber and what role it might play on potential ratings.

“A.M. Best considers the companies it rates to be well-capitalized,” said Eslami. “We look at the way carriers write cyber, and if they are able to price it properly, reserve it properly, and manage it properly within the enterprise risk management framework of our building-block approach in the rating process, which is very important.”

To access a copy of this special report, titled, “Cyber Insurance Market Sees Steady Growth but Still Awaiting a Real Growth Spurt” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273764 .

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^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.