New Program Can Help Insurers Serve Growing Cyber Market, Expected to Reach $6.2 Billion in Premiums by 2020
JERSEY CITY, N.J., March 19, 2018 — ISO announced today that 42 states and U.S. territories have implemented ISO’s cyber insurance program, which features an array of coverage options and extensive rating information to help insurers address the growing and diverse cyber market. ISO is a Verisk (Nasdaq:VRSK) business.
The cyber insurance market is expanding rapidly. According to Verisk estimates, written premium for the commercial cyber liability market will reach $6.2 billion by 2020, with annual take-up rates growing 20 to 30 percent per year during the next several years.
“Cyber risk is changing at a rapid pace, leaving many insurers without the tools they need to serve the growing market,” said Maroun Mourad, president of commercial lines at ISO. “Our rating plan features unprecedented levels of detail in primary and excess pricing information, and our flexible coverage solutions can help insurers protect businesses from cyber risk in a timely, insightful, and operationally efficient manner.”
The ISO program features advisory loss costs using 17 different rating variables—more than three times the number of variables typically used today—and was developed using predictive analytics applied to more than 32,000 historical cases. The ISO program also features coverage solutions for small and midsize businesses—often the most vulnerable to cyberattacks—as well as coverages for large commercial enterprises, government and nonprofit organizations, and financial services and media companies.
“Cyber insurance needs can vary significantly by both the industry and the size of the business,” said Prashant Pai, vice president of cyber offerings at Verisk. “The program we’ve introduced provides insurers with versatile tools to help meet the wide range of companies in the marketplace.”
Verisk offers a wide range of solutions to support cyber insurance programs, including policy language, rules, and loss costs; cyber risk assessment tools; and market forecasts.
To learn more about ISO’s new cyber program, visit the ISO Cyber Risk Solutions website at www.verisk.com/cyber.
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting, and claims information and analytics; compliance and fraud identification tools; policy language; information about specific locations; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a Verisk (Nasdaq:VRSK) business. For more information, please visit www.verisk.com/iso.
Edelman (for ISO)