FOR IMMEDIATE RELEASE
Early NAIC Analysis Sheds Light on Cybersecurity Insurance Data
Task Force to review full report at Summer National Meeting
WASHINGTON, D.C. (June 30, 2016) — The National Association of Commissioners (NAIC) today announced the collection of filings indicating more than 500 insurers have provided businesses and individuals with cyber insurance. The vast majority of these coverages were written as endorsements to commercial and personal policies. These insurers also reported direct written premium of nearly $484 million for stand-alone policies and approximately $1 billion in cybersecurity package policies1.
Based on the Cybersecurity and Identity Theft Coverage Supplement created in 2015, the NAIC sought U.S. insurers' annual statements to gather financial data on insurers writing cyber risk coverage. The NAIC data also provides information on policy counts and loss experience.
"State insurance regulators now know which insurers are writing cyber risk coverage, providing us with baseline data to perform trend analysis on exposures, premium volumes and claims activities over the next several years," said John M. Huff, NAIC President and Missouri Insurance Director. "The NAIC will continue to review whether the reporting supplement and instructions provide sufficient data for monitoring developments in this line of business."
The NAIC is aware of a significant number of non-U.S. surplus lines insurers writing cyber-risk coverages, which were not included in the NAIC filings.
"The Cybersecurity Task Force will issue a report in August summarizing what was learned from the first-year data collection effort," said Adam Hamm, NAIC Cybersecurity Task Force chair and North Dakota Insurance Commissioner. "We also intend to discuss improvements to arrive at a more complete picture of how cybersecurity insurance markets are growing,"
State insurance regulators continue to work collaboratively with other financial regulators, Congress, and the Obama administration to identify specific threats and develop strategies to protect U.S. financial and technological infrastructures. State insurance regulators are active members of the Treasury Department's Financial Banking and Information Infrastructure Committee (FBIIC), as well as the Regulatory Cybersecurity Forum for Independent and Executive Branch Regulators.
1 According to the Advisen Cyber Risk Network, the premium written in 2015 was an estimated $2 billion.