The Risky World of Commercial Cyber Risk

Cyber is the fastest growing segment of the P&C market and is expected to be larger than the homeowners’ market within years. Yet there is no standardized, or proven, approach to underwriting and managing the risk. Significant venture capital bets have been made across a spectrum of approaches, from assuming the insured will figure it out to highly prescriptive risk prevention services associated with coverage. Will the dynamic nature of this risk require a heavier hand with risk prevention and loss controls requirements? Will the market accommodate the demand for coverage where risks and losses are so heterogenous?