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8 Top Cyber Insurance Vendors

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Cyberattacks are not only a technological problem for companies — they also represent a very real financial threat. And that's where cyber insurance comes in.

According to the Ponemon Institute, the global average cost of a data breach is $3.9 million. And typical costs can be much higher for some industries and geographic locations (including the United States).

As the number of data breaches continues to rise, organizations now recognize that those costs are not theoretical. If your organization has not already experienced a significant cybersecurity event, it is only a matter of time before it does.

For that reason, most experts now recognize that a complete cybersecurity strategy not only includes technological solutions aimed at preventing, detecting and mitigating attacks, it should also include cyber insurance to help manage the associated financial risks.

While cyber insurance is a fairly new type of product, business is booming. According to the National Association of Insurance Commissioners and the Center for Insurance Policy and Research, more than 500 different companies wrote cyber insurance policies in 2017. Total direct written premiums totaled approximately $1.89 billion, which included both standalone and package policies.

Insurers were chosen for this list of top vendors based on their total cyber insurance premiums for 2017, as reported by the Insurance Information Institute (III). Based on III data, these eight insurers account for 63.6 percent of the market and a total of $1.18 billion in direct premiums.

When selecting a cyber insurer, organizations should consider a number of different factors, including the financial stability of the vendor, the type of coverage provided (such as breaches, ransomware, DDoS attacks and regulatory compliance), and the cost. In addition, most of the vendors offer ancillary services designed to help protect against, prepare for, and respond to breaches. Some also have partnerships with key cybersecurity vendors that might be helpful.

With that in mind, here are eight top cyber insurance vendors:

1. Chubb Ltd

Company profile

Based in Zurich, Switzerland, Chubb boasts that it is the world's largest publicly traded property and casualty insurance company and the largest commercial insurance provider in the United States. In addition to cyber insurance, it also offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance. It employs 31,000 people worldwide, and it had $167 billion in assets and $36 billion in gross premiums in 2017. Its stock is traded on the New York Stock Exchange under the symbol CB, and it is a component of the S&P 500.

  • Direct premiums written: $316.3 million
  • Market share: 17.0 percent
  • S&P rating: AA
  • A.M. Best rating: A++ (Superior)
  • Years providing cyber insurance: Personal product launched in May 2018. The company launched its first "cyber risk" product in 1998.

Product description

Chubb offers several different cyber insurance products. Its Enterprise Risk Management (ERM) product is for large organizations in a wide array of industries. DigiTech ERM offers enhanced protection tailored to the needs of technology companies, consultants and systems integrators, data processors and software developers. Integrity+ offers separate policies for claims made by customers, vendors, suppliers and other third parties. ForeFront Portfolio 3.0 is tailored for private companies and includes crime insurance, kidnap ransom and extortion insurance, workplace violence expense insurance, and several other kinds of insurance, in addition to cyber insurance. Finally, Chubb's Cyber Protection product covers individuals.

  • Industries served: All industries and individuals.
  • Coverage types: Depends on the product, but can include third-party liability coverage, payment card loss, regulatory proceedings, media liability, first-party coverage, business interruption, digital data recovery, telephone toll fraud, network extortion, computer fraud, funds transfer fraud, social engineering fraud, and more.
  • Limits: Most risk classes eligible for at least $10 million in limits; maximum capacity of $100 million available through Chubb’s Global Cyber Facility.
  • How to purchase: Policies available through agents and brokers.

2. American International Group (AIG)

Company profile

Also known as AIG, American International Group was founded in 1919 in Shanghai, China, and it opened its first U.S. office in 1926. Today, it does business in more than 80 countries worldwide, and the company headquarters is in New York City. It offers insurance products for both individuals and businesses, and its commercial lines include cyber insurance, accident and health, casualty, environmental, fronting and captive services, management liability, mergers and acquisitions, political risk, professional liability, property, surety, warranty and other types of insurance. In 2017, it reported annual revenue of $49.52 billion and total assets of $498.3 billion. It has nearly 50,000 employees. Its stock is traded on the New York Stock Exchange under the symbol AIG, and it is a component of the S&P 500.

  • Direct premiums written: $228.7 million
  • Market share: 12.3 percent
  • S&P rating: A+
  • A.M. Best rating: A (Excellent)
  • Years providing cyber insurance: AIG has been providing cyber insurance for nearly 20 years.

Product description

AIG's cyber coverage won the Advisen 2018 Cyber Risk Innovation of the Year award for CyberMatics. Its cyber insurance can be rolled into a general liability policy or purchased on a standalone basis. Its base product, CyberEdge, covers the financial costs associated with breaches, event management, data restoration, financial costs to third parties, network interruption, and cyber extortion. CyberEdge Plus adds coverage for physical damage caused by cyberattacks, and CyberEdge PC adds excess coverage plus cybersecurity services provided through a partnership with IBM.

  • Industries served: All industries, including retail, healthcare, higher education, financial institutions, manufacturers, technology, law firms and energy companies
  • Coverage types: Third-party loss resulting from a security or data breach, event management costs, network interruption, cyber/privacy extortion, digital media liability, expanded business interruption, first-party property damage, third-party bodily injury and property damage, products/completed operations coverage
  • Limits: Up to $100 million
  • How to purchase: Application available online

3. XL Group Ltd.

Company profile

Recently acquired by AXA, the XL group is now known as AXA XL. It specializes in property, casualty, professional and financial lines, and specialty insurance and reinsurance. It serves clients in more than 210 countries, and J.D. Power named it "Highest in Customer Satisfaction among Large Commercial Insurers" in 2017 and 2018. Founded in 1986, the company is headquartered in Bermuda. For 2017, it reported a net loss of $521.6 million.

  • Direct premiums written: $177.9 million
  • Market share: 9.6 percent
  • S&P rating: AA- (AXA Insurance Co.)
  • A.M. Best rating: bbb+
  • Years providing cyber insurance: Information not available

Product description

XL Group offers cyber insurance with coverage for technology errors and omissions liability and media in the United States and Canada. Its policy is designed to be easy to read, and it covers any breaches of cloud computing providers. The cyber insurance policy comes with proactive cybersecurity services provided by a number of different vendors.

  • Industries served: Retail, financial institutions, healthcare, hospitality, professional services firms, manufacturers, higher education institutions, power and utility companies, technology companies, telecommunications companies, IT consultants, internet companies and others
  • Coverage types: Privacy and security liability, data breach response and crisis management, privacy regulatory defense costs and coverage for any fines and penalties assessed, business interruption and extra expense, data recovery and cyber extortion
  • Limits: Up to $15 million
  • How to purchase: Application available online; SMB cyber insurance available on demand

4. Travelers Companies Inc.

Company profile

Travelers was founded in 1853 as St. Paul Fire and Marine. Today, it is the largest writer of commercial property insurance in the U.S., as well as one of the top three writers of personal insurance in the country. In 2017, it reported total revenue of approximately $29 billion and total assets of approximately $103 billion. It has 30,000 employees and offers policies through 13,500 independent agents and brokers in the United States, Canada, the U.K., Ireland and Brazil. It is publicly traded on the New York Stock Exchange under the symbol TRV, and it is a component of the Dow Jones Industrial Average and the S&P 500.

  • Direct premiums written: $119.1 million
  • Market share: 6.4 percent
  • S&P rating: AA
  • A.M. Best rating: A++
  • Years providing cyber insurance: Information not available

Product description

Travelers' CyberRisk Insurance is the company's broad cyber insurance product designed for most industries and companies ranging in size from small businesses to the Fortune 500. It is available as a standalone product or as part of a business insurance package. It also offers three other related products: CyberFirst for Technology Companies, CyberFirst for Public Entities and CyberFirst for Small Businesses. In addition, it offers pre-breach services in partnership with Symantec, as well as Cyber Coaches, an eRisk Hub and a Cyber Academy.

  • Industries served: Small businesses, non-profits, technology, public sector, finance, healthcare and others
  • Coverage types: Network and information security liability, communications and media liability, regulatory defense expenses, crisis management event expenses, funds transfer fraud, security breach remediation and notification expenses, e-commerce extortion, computer program and electronic data restoration expenses, business interruption and computer fraud
  • Limits: Information not available
  • How to purchase: Available through independent agents

5. AXIS

Company profile

Also known as AXIS Capital, AXIS offers property and casualty, professional, terrorism, marine, energy, credit and political risk, environmental, accident, health and cyber insurance, as well as reinsurance (insurance for insurers). In 2017, it reported total assets of $24.8 billion and gross premiums of $5.6 billion. It has its headquarters in Bermuda and also does business in the U.S., Canada, Europe, Australia, Singapore and Latin America. It is publicly traded on the New York Stock Exchange under the symbol AXS.

  • Direct premiums written: $101.5 million
  • Market share: 5.5 percent
  • S&P rating: A+
  • A.M. Best rating: A+ (Superior)
  • Years providing cyber insurance: Information not available

Product description

AXIS offers two separate cyber insurance products. PrivaSure covers data security and privacy events, and TechNet Solutions covers errors and omissions exposures for companies that provide technology, telecommunications or Internet-based products. In the case of a breach it offers breach coaches and has a list of pre-approved vendors available online.

  • Industries served: Healthcare, consultants, municipal governments, professional firms, financial institutions, education, retailers, wholesalers, manufacturers, contractors, restaurants, hospitality, technology
  • Coverage types:Liability from privacy breaches, DDoS attacks, failure to disclose incidents, regulatory defense and fines, crisis management, punitive damages, crisis management expenses, public relations expenses and computer system extortion
  • Limits: Up to $20 million limit capacity, primary or excess
  • How to purchase: Applications available online

6. Beazley Insurance Co.

Company profile

Beazley is a specialist insurance company that offers marine, political, accident and contingency, property, reinsurance (insurance for insurers) and specialty products, which includes its cyber insurance business. Founded in 1986, it is headquartered in London and does business in the U.S. Europe, Canada, Latin America and Asia. In 2018, it won multiple awards including Launch of the Year for Beazley Smart Tracker, Risk Carrier of the Year, Innovative Initiative for Weather Guard, Insurance CEO of the Year and Insurer of the Year. In 2017 it reported total gross premiums of $2.34 billion and revenue of $2.04 billion. It is traded on the London Stock Exchange under the symbol BEZ.

  • Direct premiums written: $95.0 million
  • Market share: 5.1 percent
  • S&P rating: A+ (Strong)
  • A.M. Best rating: A (Excellent)
  • Years providing cyber insurance: Beazley has been providing cyber insurance since 2009.

Product description

Beazley calls its cyber insurance Beazley Breach Response (BBR). The company claims that it offers 360-degree protection against all cyber risks. That protection includes BBR Services, a business unit dedicated to helping organizations manage their response to incidents. It includes forensics experts, specialized lawyers and public relations professionals who can help organizations address breaches. Through a partnership with Lodestone Security, it also offers pre-breach services.

  • Industries served: Healthcare, architecture and engineering, legal, software, oil and gas, SMBs, others
  • Coverage types: First party coverage for cyber extortion, data recovery costs, business interruption resulting from security breaches and system failures, contingent business interruption from incidents occurring at the policyholder’s vendors and suppliers, and eCrime coverage
  • Limits:Up to $15 million with BBR, but additional coverage is available through BBR Boost
  • How to purchase: Available through the Lloyd's broker network and other brokers

7. CNA Financial Corp.

Company profile

Founded in 1897 in Detroit, Michigan, CNA now makes its home in Chicago, Illinois. It offers customized business insurance for organizations and professionals in the U.S., Canada, Europe and Asia. For 2017, it reported revenue of $9.5 billion and total assets of $44.9 billion. It has approximately 6,200 employees. Its stock is traded on the New York Stock Exchange under the symbol CAN.

  • Direct premiums written: $73.1 million
  • Market share: 3.9 percent
  • S&P rating: A (Strong)
  • A.M. Best rating: A (Excellent)
  • Years providing cyber insurance: Information not available

Product description

CNA's NetProtect line offers coverage for privacy and security breaches. It includes access to risk control consultants, and the company claims to be the "only insurance carrier awarded the UL Recognized Risk Engineers designation." The company also says that its underwriters average 10 years of experience dealing with cyber.

  • Industries served: Construction, financial services, healthcare, manufacturing, professional services, technology
  • Coverage types: First-party coverage for network extortion, business interruption and extra expense, loss or damage to a network, and e-theft; third-party coverage for media liability, privacy liability, network security liability, and costs to comply with privacy breach notification laws and defense of privacy regulatory proceedings
  • Limits: Depends on the policy
  • How to purchase: Available through independent brokers and agents

8. BCS Financial Corp.

Company profile

You may not have heard of BCS Financial before, but you have almost certainly heard of its parent company, Blue Cross and Blue Shield. While the Blue Cross Association was founded in 1948, BCS Financial didn't come into being until 1980. It does business in all 50 states, and in 2017, it reported revenue of $622 million and $1 billion in assets. It offers large claim solutions, ancillary income products, financial solutions (including money market funds) and specialty insurance, including travel, student accident, agent errors and omissions, and cyber liability insurance.

  • Direct premiums written: $69.9 million
  • Market share:3.8 percent
  • S&P rating: B+
  • A.M. Best rating: A- (Excellent)
  • Years providing cyber insurance: Information not available

Product description

BCS offers two cyber products: Plan Cyber Liability, which is specifically for Blue Cross and Blue Shield member companies, and Commercial Cyber Liability for other types of companies. The company does not provide as much information online about its cyber products as the other leading cyber insurers do.

  • Industries served: Blue Cross and Blue Shield member companies, as well as businesses in any industry with revenue below $100 million
  • Coverage types: Coverage for most types of breaches
  • Limits: $30 million
  • How to purchase: Contact the company for more information

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