The burgeoning cyber insurance market is at a critical point of inflection. After 20 years of product evolution, with most mainstream carriers finally settling on a common core set of coverages, the status quo is being challenged. As our world becomes more connected the prospect of cyber attacks resulting in serious physical damage looms larger. But how should the insurance market address these new exposures?

The property insurance market was created as a by-product of the Industrial Revolution. Modern manufacturing and mass property ownership created a need for insurance products to protect the value stored within tangible assets such as buildings, plants and machinery—assets that were at increasing risk from physical perils such as fire, theft and flood....

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