Property Casualty Insurance Industry Contributing to Improved Cyber Hygiene in the U.S., According to New Survey of Insurers, Agents, and Brokers

CHICAGO - A new survey of insurers, agents, and brokers, conducted by the American Property Casualty Insurance Association (APCIA) and the Council of Insurance Agents & Brokers (Council) among their respective members, shows that the property casualty insurance industry is contributing to improved cyber hygiene in the United States and continues to develop products and services to meet the needs of businesses. The survey responses represent current views from survey participants, which are subject to change depending on market developments.

"In order for a business or entity to obtain a cyber insurance policy, they typically must have at least basic cybersecurity best practices in place," said Gary Sullivan, senior director of emerging risks at APCIA. "These underwriting standards are helping to increase our nation's overall resiliency against evolving cyber threats."

The majority of APCIA and Council members also agreed that current gaps in the cyber insurance marketplace will likely be filled as the market develops over time.

"While our brokers believe there is still adequate cyber coverage available, there are still some industry areas that are difficult to place despite employing multiple cyber security practices," said Blaire Bartlett, vice president of government and political affairs at The Council.

Key Survey Findings from APCIA and The Council

• Applications for cyber insurance are more likely to be approved when businesses have implemented basic cybersecurity measures such as multi-factor authentication, software security patch update schedules, employee training programs, and segmenting authorization to access certain programs or functions in operating systems.
• Many of the coverage gaps that exist in the marketplace today are expected to be addressed in the long-term (more than three years).
• In the short term, respondents indicated they believe the market will address coverage limit adequacy, cyber-related physical damage, and security breach liability coverages within the next three years.
• Risk types that may have difficulty in obtaining coverage in the cyber insurance market include government entities, utilities, education institutions, and healthcare firms.

About The Council

The Council of Insurance Agents & Brokers is the premier association for the leading commercial insurance and employee benefits intermediaries around the world. Our membership annually places 85 percent of U.S. property/casualty insurance premiums and comprises the fastest growing, most innovative firms in the industry, with more than 20 percent headquartered internationally.