Insurers develop cyber coverage for maritime industryPosted On: May. 11, 2014 12:00 AM CST
The insurance industry is developing coverage for potential bodily injury and property damage claims created by maritime industry cyber risks.
Right now, most marine insurance policies “are silent on the issue of cyber risk,” said Sean Dalton, New York-based executive vice president and head of the marine division at Zurich Insurance Group Ltd.
The insurance industry “is not evolving as quickly as the threat is,” said Dena Magyar, Charlotte, North Carolina-based national practice leader at Wells Fargo Insurance Services USA Inc.'s professional risk group.
“What we're seeing is the desire to bring bodily injury and property damage into the cyber polices in some way, shape or form,” said Adam Cottini, New York-based senior vice president at Arthur J. Gallagher & Co.
The focus is on devising coverage that is broader than business interruption, or network security and privacy coverage in the cyber area, said Anne Corona, San Francisco-based managing director of Aon Risk Solutions' financial services group.
She said this is the concept behind enhanced cyber insurance that covers physical damage caused by cyber attacks that was recently introduced by American International Group Inc.
Meanwhile, coverage can be manuscripted if the underwriter can be given enough information to understand the risk, quantify it and the controls in place to manage it, Ms. Magyar said.