Reinsurers see cyber risk as a necessary area to offer capacity to meet the growing demand on primary insurers from clients and despite the prevalence of data breaches, the reinsurance industry should be able to meet the need, according to a new report from Aon.
“While there is still headline risk from recent data breaches such as Anthem, Inc., Premera Blue Cross, Experian / T-Mobile, and Ashley Madison, it still remains an opportunity for many who are willing to invest in resources to understand the dynamics of cyber as a peril and product,” noted Aon in its report.
“The demand for cyber insurance coverage and products continues. Some carriers have seen their portfolios grow by more than 20 to 30 percent over a 12-month period. Demand for reinsurance has been created for a number of reasons including aggregations to risk in certain industries, the potential of systemic exposure to large-scale event risk, and the overall unknown based on a growing and evolving exposure.”
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Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
