Even before a global wave of ransomware attacks in mid-May demonstrated the vulnerability of organizations large and small, many corporate buyers were already losing sleep over the lack of clarity and certainty in their cyber insurance coverage for proliferating digital exposures, judging from the attention devoted to such concerns during the recent Risk and Insurance Management Society (RIMS) annual conference.

Indeed, caveat emptor — let the buyer beware — seemed to be the unofficial theme of the numerous cyber risk seminars taking up a large portion of the event's extensive educational program. During one heavily attended session after another, risk managers, attorneys, brokers, and consultants warned how challenging it would likely be to secure sufficient and reliable cyber coverage in this promising but problematic market.

Related: Insurers must adapt to underwrite mutating cyber risks

Lack of clarity and certainty

Insurers have a lot at stake here since cyber appears to be one of the industry's biggest opportunities for organic growth. With new cyber exposures manifesting themselves all the time, increasing demand for risk-transfer solutions could offer insurers a chance to expand the overall property-casualty premium pie, rather than keep fighting one another for a bigger slice of what's already available to cover more routine exposures. However, predictions of exponential growth are unlikely to be realized unless insurers can offer clients true peace of mind about rapidly evolving cyber threats to their people, property, reputation and bottom line.