"While losses of $12.5 billion are relatively low when placed in the context of natural catastrophes, considering these exposures are often unpriced or unaccounted for in enterprise risk management, the impact on carriers can be significant and more importantly, unexpected," said Sridhar Manyem of AM Best. (Credit: Pixza Studio/Shutterstock.com)

The accumulation of cyber risk in the U.S. commercial property insurance market could trigger a one-in-100-year loss of $12.5 billion, which would cause a downward transition in the AM Best capital adequacy ratio (BCAR) for nearly 20 U.S. property carriers, according to a study by CyberCube, AM Best and Aon plc.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]

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