ISO’s cyber insurance program is now available to insurers in 42 states and U.S. territories.
The ISO program features advisory loss costs using 17 different rating variables, which the Verisk company says is more than three times the number of variables typically used today. The program was developed using predictive analytics applied to more than 32,000 historical cases.
The ISO program has coverages for small and midsize businesses as well as for large commercial enterprises, government and nonprofit organizations, and financial services and media companies.
“Cyber insurance needs can vary significantly by both the industry and the size of the business,” said Prashant Pai, vice president of cyber offerings at Verisk. “The program we’ve introduced provides insurers with versatile tools to help meet the wide range of companies in the marketplace.”
ISO would not disclose which states have not approved the program.
The cyber insurance market is expanding. Verisk estimates that written premium for the commercial cyber liability market will reach $6.2 billion by 2020, with annual take-up rates growing 20-30 percent per year during the next several years.
“Cyber risk is changing at a rapid pace, leaving many insurers without the tools they need to serve the growing market,” said Maroun Mourad, president of commercial lines at ISO. He said the ISO rating plan features “unprecedented levels of detail in primary and excess pricing information” and flexible coverages
Verisk offers products to support cyber insurance programs including policy language, rules and loss costs; cyber risk assessment tools; and market forecasts.
*This story appeared previously in our sister publication Insurance Journal.