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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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The State of Cyberliability

Cyber Password Security
March 26, 2015

Three recent articles exemplify the state of the cyberliability line of coverage. In its nascent evolution, there exists an enormous amount of uncertainty, but therein lies the need for risk transfer contracts. Additionally, insurance veterans and company owners are terribly ill equipped to even understand the risk, let alone grapple with responsible and reasonable underwriting. Our interconnected digital world makes communication and education ubiquitous but allows the malevolent to wreak havoc across millions of people’s lives and businesses.

In this article, Michael Heller explores how board of directors' concerns have moved beyond fiduciary and fraudulent monitoring. The new unknown of cyberrisk leads boards' concerns (as well as other emerging threats). Less than a quarter of those surveyed felt they were able to monitor and manage cyberrisks.

In this article, Robert Hackett (aptly named) reviews recent polls that show that the majority of firms believe they will be hacked in the coming year, while almost three-quarters admitted to having fallen victim to a cyberattack last year. As with any new exposure, the data showing severities and frequencies of these attacks are still very sparse. 

And, finally, in this write-up, Judy Greenwald discusses the pros and cons of cyberliability outlined in a recent Fitch Ratings Ltd. Report. On one hand, the emerging exposure presents a real business opportunity for existing carriers and start-ups for growth, but the potential for significant losses, or so dubbed “incalculable threat,” makes pricing and underwriting nearly impossible. She also brings up the recent suggestion of a federal backstop, akin to the one in place for terrorism.  Considering the maladies of the federal government and the global interconnectedness of the cybercrimes, it doesn’t seem like this idea will gain much traction until an “incalculable” event occurs.

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