Almost half of insured firms have claimed on cyber policy
Almost half of respondents to an insurance industry study have made a claim for cyber breach. The study, commissioned by Wells Fargo Insurance, found that 85 per cent of the top 100 US middle market companies ($100 million+ annual revenue) have purchased cyber insurance and 44 per cent have already claimed.
While the level of firms with policies has soared, their readiness for a cyber-attack is often still lacking. “While companies recognize the need for cyber security and data privacy insurance, purchasing coverage is not a complete solution. It’s also important to recognize that other factors, including testing incident response plans, employee awareness training, and following established privacy policies, are all critical components of an overall risk management program,” said Wells Fargo’s Dena Cusick.
The top reasons for purchasing cyber cover are to protect against financial loss, protect shareholders and help prepare for data privacy events. Almost all (96 per cent) of the respondents that had made a claim said that they were satisfied with their coverage and how the claim was handled.
Ecclesiastical among top choices for young workers
The next generation of insurance professionals are in safe hands at Ecclesiastical Insurance after it was voted one of Canada’s Top Employers for Young People for the fourth straight year. The firm has been recognised by Canada’s Top 100 Employers
for its commitment to young people and specifically for its intern program which is focused on those wishing to enter the commercial insurance sector. "We are especially proud that Ecclesiastical's Business Intern Program has been recognized for its innovative approach to helping young people gain the knowledge and skills they need to become successful insurance professionals and good corporate citizens," Lorna McIntosh, Vice President, Human Resources commented.
Insurance premiums under pressure
Insurance premiums in the UK market are set for disparity in 2016 as those in flood-hit areas are expected to see increases following costs to the industry of some U$1.8 billion from recent floods; meanwhile those in other areas will see lower premiums as competition between insurers intensifies. That’s according to PwC which also expects auto insurance premiums to rise as lower gasoline costs increase road traffic and therefore collisions. For commercial lines insurers will again face increased competition. PwC’s Mohammed Khan says that outside of flood zones insurers will be cutting rates or adding value: “Terms and conditions are becoming looser so, even if insurers can retain premium rates, businesses will be able to get advantageous terms and conditions (more cover, lower deductibles) for the same premium.”