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Insurance Business | 17 Sep 2015, 09:02 AM Agree 0
A key insurance market is set to be worth US$7.5bn within the next five years as Google has been pegged as a key disruptor and brokers are set to play an important role, research has revealed.
  • John | 17 Sep 2015, 10:08 AM Agree 0
    My concern with cyber is that rather than an area of opportunity for insurers it could end up being a graveyard.

    There is potential for huge full limit losses in this class of insurance. The Target hack in the last couple of years was about $250,000,000 USD, although only a third of this was insured.

    The quantum of the Ashley Maddison loss hasn't yet been disclosed & they're unlikely to have a high enough sum insured but it also has the potential to be huge.

    Multinational & large US companies potentially need upwards of half a billion dollars sum insured to cover their exposures.

    Whilst this sort of scheme will bring in plently of premium it would also drag in a lot of different insurers.

    Sooner or later there will be a fully insured loss of this magnitude or multiple smaller ones & the market will become extremely stressed or fail.

    Ultimately the risk needs to be priced correctly & cover issued cautiously rather than rushing headlong into this market just to avoid the disruptor bogeyman.
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