Nearly three in four corporate risk managers are not buying insurance policies to cover data breaches and damage to customers’ privacy despite the rising threat of hacking, according to a survey released on Monday.
Not only are most North American companies shunning coverage entirely, many of those who are taking out “cyberinsurance” are buying policies with only limited protection in case of an attack, consultants Towers Watson said in their annual review of corporate risk.
In the wake of high-profile attacks on companies like Sony and Citigroup, insurance brokers reported last summer that interest was soaring in policies to protect against civil suits and regulatory fines from data breaches.
That, in turn, led a number of insurers to start offering policies, which had an immediate downward effect on rates. Insurance brokers Marsh recently said that pressure has continued, as capacity exceeds demand.
(Ref: Insurance Journal, April 17,2012)
