The Chaotic Universe of Cyber

Still white-hot, the cyber galaxy is expanding outwards, with the product evolving from simple data breach protection into the area of business interruption–with more changes likely in store. For many brokers, the cyber universe appears chaotic.

Carriers’ policy definitions, terms and conditions continue to radiate outwards in a constant state of flux. Brokers hearing common cyber terms like ‘first-party’ and ‘third-party’ bandied about may think they know what they mean, only to find out that companies haven’t defined the terms. One company’s exclusion feels like another company’s endorsement. As for pricing, well, let’s just say that there’s a lot of mystery in the cyber universe.

Robin Shufelt, assistant vice president of technology and cyber with The Sovereign General Insurance Company, agrees there is a lack of understanding around what is covered and what is not, as well as how products are priced.

“The products lack standardization across carriers, which makes it very difficult for clients to compare coverages,” she said. “Each carrier has its own terminology and definitions, and its own way of addressing coverage. There are many endorsement-type products on the market that offer some coverage, but the lack of clarity around what they cover could lead clients to feel that they have more protection that they actually do.”

Read the full article in the Digital Edition of the March 2018 Canadian Underwriter.

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