Insurance industry helps improve cyber hygiene in US, survey finds

The property/casualty insurance industry is helping to improve cyber hygiene in the U.S., according to a survey of insurers, agents and brokers by the Property Insurance Association of America and the Council of Insurance Agents and Brokers.

Survey responses represent the current opinions of survey participants who are members of the groups.

A majority (75%) of APCIA and Council members also agreed that gaps in the cyber insurance market will likely be filled as the market develops over time.

Among respondents in both groups, 69% knew claimants who applied but were unable to obtain cyber insurance because they lacked minimum best practices.

About 67 percent of respondents said the typical cyber insurance policy limit was $1 million, with several respondents citing limits of $2 million, $5 million, and $20 million. Most respondents’ highest placed limit ranged from $10 million to $30 million, with the highest identified being $450 million.

Over the past year, the typical claim has ranged from $20,000 to more than $1 million, with the average size ranging from $50,000 to $350,000, according to Council respondents.

A summary of the main findings include:

• Cyber ​​insurance claims are more likely to be approved when companies have implemented measures such as multi-factor authentication, software security patch update programs, employee training programs, and segmented authorization to access certain programs or features in operating systems .
• Many of the coverage gaps are expected to be addressed in the long term (more than three years).
• Respondents believe the market will address the adequacy of coverage limits, cyber physical damage and security breach liability coverages over the next three years.
• Risk types that may have difficulty obtaining coverage in the market include government entities, utilities, educational institutions, and healthcare firms.