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-   -   What's the exposure measure for cyber insurance (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=331254)

TDH 04-01-2018 05:03 PM

What's the exposure measure for cyber insurance
 
To those who writing it, what factors are you looking at generally? And what's the main exposure measure? I was thinking people who be using the turnover of the firm of something alike as a main exposure base - or are people just using the amount of coverage. Any ideas?

Vorian Atreides 04-01-2018 06:48 PM

I doubt that you're going to get any responses from those who are active in that field due to proprietary knowledge.

I would suggest broadening the topic to just consider what are the underlying issues (regardless of what an actual company does).

It might also be helpful to take into consideration of pricing for a large account vs. "manual rating" where you develop a rate for a class of risks.

As it is, I am not involved in this area.

It would seem to me that one key element for large account pricing would be the number of servers connected to the internet would be a key consideration. Offset that by the number of employees employed in IT security.

As for manual rating, that would most likely be number of business locations.

TDH 04-02-2018 06:02 AM

Quote:

Originally Posted by Vorian Atreides (Post 9280959)
I doubt that you're going to get any responses from those who are active in that field due to proprietary knowledge.

I would suggest broadening the topic to just consider what are the underlying issues (regardless of what an actual company does).

It might also be helpful to take into consideration of pricing for a large account vs. "manual rating" where you develop a rate for a class of risks.

As it is, I am not involved in this area.

It would seem to me that one key element for large account pricing would be the number of servers connected to the internet would be a key consideration. Offset that by the number of employees employed in IT security.

As for manual rating, that would most likely be number of business locations.

Thanks!

PeppermintPatty 04-02-2018 08:26 AM

I am also not in the field, but I would have guessed it would have be rated like general liability, and the pricing would look at some general measure of size of company (like revenue) for the exposure, and what business they are in (retail, hospital, manufacturing) for the manual rate.

NormalDan 04-02-2018 09:01 AM

Quote:

Originally Posted by Vorian Atreides (Post 9280959)
Offset that by the number of employees employed in IT security.

Ha!

Maphisto's Sidekick 04-02-2018 09:19 AM

Quote:

Originally Posted by TDH (Post 9280934)
To those who writing it, what factors are you looking at generally? And what's the main exposure measure? I was thinking people who be using the turnover of the firm of something alike as a main exposure base - or are people just using the amount of coverage. Any ideas?

A single, standard exposure base has not yet emerged for the industry.

I've seen revenue, number of employees, number of records, ....

Arlie_Proctor 04-03-2018 08:38 PM

You also need to be specific in your questions regarding whether you are looking at liability or first party coverages. The costs to recover and cleanse your own systems after an intrusion are completely different from the question of what the hacker stole from your systems and what it will cost to protect the consumers who gave you that data. Consider the difference between a retailer who uses a third party POS system and only tracks inventory internally to a bank and I think you'll see a big difference in liability exposures, all other things being equal.

In the interest of full disclosure, I don't work directly with cyber coverages.


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