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Cyber Is the Hottest Product in Insurance

A series of recent corporate and government hacking attacks have made cyber insurance one of the more rapidly growing insurance products in the U.S., according to the Wall Street Journal...
December 20, 2016

A series of recent corporate and government hacking attacks have made cyber insurance one of the more rapidly growing insurance products in the U.S., according to the Wall Street Journal.

On December 14, Yahoo Inc. said that in 2013 a third party gained unauthorized access to data in more than one billion user accounts. This disclosure follows another made in October when Yahoo disclosed a distributed denial-of-service attack that resulted in hundreds of websites, including Twitter Inc. and Netflix Inc., being unreachable.

PricewaterhouseCoopers values the current cyber insurance market at approximately $3 billion and predicts that the total premiums in the market will rise to $7.5 billion by 2020, an increase that will result in part from higher prices. During the same period, prices for other insurance products are predicted to be unchanged or to decline.

Bob Parisi, cyber product leader for brokerage Marsh, a unit of Marsh & McLennan Cos., said that nothing is growing as rapidly as cyber, and some leading carriers report that their books have been doubling every year.

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