Could 2015 be the year cyberinsurance goes mainstream? After the Russians broke into JP Morgan Chase, hackers cracked Target, Home Depot and more recently Chik-Fil-A and Kim Jung-un stole the Interview, cyberinsurance sales are unsurprisingly up!
Insurance brokers say that sales of the policies are expected to roughly double this year, from about $1 billion in 2013. They also note a broadening of the type of companies buying the specialized coverage, beyond the retailers, financial firms and health-care companies that had been among the biggest purchasers. “It’s gone mainstream,” said Kevin Kalinich, global practice leader of network risk and cyber insurance at Aon PLC’s Aon Risk Solutions. Many types of companies are concluding “there are assets other than credit-card information that the bad guys are going after,” he said. Data collected by Aon show that 86% of big retailers and 58% of big health-care firms—those with revenue above $1 billion a year–carried some form of cyber coverage as of Dec. 15, up from 64% and 42%, respectively, in 2013.