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Report: Treat Cyber As a Standalone

Treating cyber risk as standalone insurance holds unique advantages for both sellers and buyers of cyber coverage, according to a new report.
May 31, 2017

Treating cyber risk as standalone insurance holds unique advantages for both sellers and buyers of cyber coverage, according to a new report by JLT Re and JLT Specialty Limited that was recently released at the 2017 RIMS Conference.

Demand for cyber coverage is increasing dramatically, according to another survey [“Cyber Insurance Market Watch Survey”] by the Council of Insurance Agents & Brokers (CIAB). It found that the average cyber policy limit increased to around $6 million in the last six months, double the $3 million reported in October 2016; and that cyber insurance generated at least $3.5 billion per year in annual premiums.

The JLT Re report said that as more premiums flow into the standalone market, “carriers will be able to evaluate and price risks more accurately as good-quality claims data and sophisticated modelling tools become increasingly accessible. JLT believes the (re)insurance market should support these potential changes by laying the foundations for a sustainable, long-term cyber insurance framework.”

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