Did you know that the smart TVs, video-game consoles and refrigerators that are making your lives easier is a sitting duck for security threats? And where there is threat, there is insurance.
To date, cyber insurance was a product only available for businesses. However, lately consumers can also acquire this to protect computers, personal data, home networks or personal clouds.
According to Lisa Lindsay, executive director of the Private Risk Management Association, a typical household consists of various electronic devices that are connected to internet. This makes it an entry point for a cyberattack.
American International Group Inc. (AIG) will be providing cyber coverage among its commercial insurance products starting in the first quarter 2018. This move will help customers get a clarity on how they are covered in case of a cybersecurity breach.
Speaking on this decision by AIG, Tracie Grella, global head of cyber risk insurance at AIG, said, “The change is part of the insurance giant’s effort to shift from issuing policies that do not specify whether cyber losses are covered.”
Grella further added that AIG is reviewing all its policies to check the exposure to cyber risk. Cyber coverage is a major concern that has been on the rise for companies across the world. In September, Equifax revealed that cyber criminals had forcefully accessed its systems and taken sensitive information of more than 145 million people, by far the largest hack to have occurred.
Information from the company’s existing policies will help the insurer better understand the insurer’s overall exposure. AIG has announced a property policy that particularly takes care of cyber coverage.
Grella further said, “When you buy affirmative cyber coverage, you should be paying for it.”