Cybercrime continues to raise risks for insurers and their customers, and the dangers are evolving and becoming more global in nature.
At the recent PLRB conference in Anaheim, Calif., Christina Terplan of Clyde & Co. said that a breach last year in South Korea impacted 70% of that country's population. She explained that losses in the U.S. are usually larger than in other countries because of the information accessed, but she cautioned that cybercrime involves a lot more than just losing customer data. Some hackers now have records going to duplicate sites so nothing seems amiss, and others are just deleting information to damage a company's reputation.
Mark Voronin with Zurich North America said that while certain property policies will cover some of these breaches, they are limited in scope. Cyber policies are usually triggered when the breach is discovered since the actual event could have taken place much earlier. With more breaches involving monetary losses, the number of cybercrime policies insurers are offering is growing exponentially. From 2013 to 2014, the amount spent on policies doubled from $1 billion to $2 billion. And new specialized coverages are available to address the regulatory issues and privacy concerns which may be involved in a breach.
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