In this A.M.BestTV episode, Fred Eslami, associate director,
and Bobby Skrabal, industry analyst, A.M. Best, said take-up
rates, prices and expectations for cyber coverage differ between large
and medium-to-small organizations. Insurers are still developing pricing
and coverage strategies. Click on http://www.ambest.com/v.asp?v=ambcyberreport618
to view the entire program.
“The market is really bifurcated in terms of the size of an
organization,” said Skrabal. “The take-up rates for national accounts
are somewhere above 50%. For small- to medium-sized enterprises (SME),
it is in the 10% to 30% range.”
Skrabel also said that due to the mature nature of the national
accounts, “They are better able to quantify the impact that a
cyber-event could have on their business, while some in the SME market
do not think they are going to be targets of attacks. They think that
only bigger companies are hacked.”
Eslami addressed the issue of how A.M. Best view’s cyber and what role
it might play on potential ratings.
“A.M. Best considers the companies it rates to be well-capitalized,”
said Eslami. “We look at the way carriers write cyber, and if they are
able to price it properly, reserve it properly, and manage it properly
within the enterprise risk management framework of our building-block
approach in the rating process, which is very important.”
To access a copy of this special report, titled, “Cyber Insurance Market
Sees Steady Growth but Still Awaiting a Real Growth Spurt” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273764.
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