Cyber Insurance Market Survey Report

Earlier this year, members of the American Property Casualty Insurance Association (APCIA) who write cyber insurance were invited to respond to a survey regarding marketplace gaps in coverage or risk selection in the cyber insurance market.

Working in tandem with the APCIA, The Council of Insurance Agents & Brokers (Council) also surveyed a sample of domestic broker members and their leads on cyber insurance placements using similar questions regarding cyber policy limits, claims, gaps in coverage, and industry challenges.

According to survey respondents, most cyber insurance gaps may be filled, though it could take more than three years to address some of those gaps in the provision of cyber insurance to businesses and other organizations, and sectors ranging from utilities to higher education could be challenged in securing coverage at all. Below are some key highlights from the report.

Highlight #1: Gaps in the Cyber Insurance Marketplace

Identified gaps in the cyber insurance market–first and third party:

• Indemnity Payments
• Incident Response Services
• Social Engineering and Invoice Manipulation
• Cyber-crime Coverage
• Coverage Limit Advocacy
• Cyber-related Physical Damage
• Security Breach Liability Coverage

Gaps expected to be filled in the short-term (within next three years):

• Incident Response Services
• Indemnity Payments
• Coverage Limit Inadequacy
• Incident Response Services
• Security Breach Liability Coverage

Highlight #2: Client Risk Types Having Difficulty Obtaining Cyber Insurance

• Government Entities
• Utilities
• Education Including Higher Ed
• Critical Infrastructure
• Energy
• Manufacturing
• Healthcare
• Logistics
• Transportation Including Airlines

Highlight #3: Catastrophic Cyber Event

Industries that could be at risk of a catastrophic cyber event:

• Banking
• Telecom
• Logistics

Types of cyber events considered catastrophic:

• Widespread Critical Infrastructure Outage
• Infrastructure Outage (Non-Cloud)
• Cloud Outage
• Self-Propagating Malware
• Zero-Day Vulnerability Exploitation
• Widespread Data Breach