APCIA & CyberAcuView Release Joint Research Paper on the Elements of an Efficient Cyber Insurance Market

WASHINGTON, Oct. 24 (TNSres)-- The American Property Casualty Insurance Association issued the following news release:

The American Property Casualty Insurance Association (APCIA), in partnership with CyberAcuView, has published a new research paper "Elements of an Efficient Cyber Insurance Market." The paper is a factual analysis of cyber insurance market data and trends and examines the challenges for the cyber insurance market, changes in underwriting, and the continuing evolution of cyber insurance in a constantly evolving technological landscape.

"Cyber risks are a continually evolving threat, which is why an efficient market for cyber insurance products is critical to ensuring that consumer demands can be met," said Shelby Schoensee, director of cyber & counsel for APCIA. "Cyber insurance is a developing line of business and, as it is still maturing, the cyber insurance market needs time to develop further to sustain its growth."

Some key points of the research paper include:

* The cyber insurance market continues to mature with access to experience data, stronger underwriting, capital market investments, engagement with law enforcement and other related security agencies to counter cybercrime, and collaboration on systemic risk solutions that will benefit both policyholders and society.

* An efficient cyber marketplace benefits from consistency and an appropriate level of regulatory flexibility that is not unduly restrictive or cumbersome for insurers to effectively respond to changing needs, expectations, and risks of their consumers.

* Insurance regulation should simultaneously foster informed consumer choice, maintain solvency oversight, and limit fraud and deceptive practices by all participants in the marketplace.

* Efficiency and market competition empowers consumers by providing pricing and policy coverage options.

"All stakeholders benefit from reasonable, necessary, and clear regulation," added Schoensee. "To the extent that regulations are necessary, a predictable and consistent regulatory and legal environment must exist that offers flexibility and a level playing field for all stakeholders."

Demand for cyber insurance in the U.S. continues to grow and is predicted to double annually for the foreseeable future.

One of the most significant cyber threats today is the proliferation of ransomware attacks. Insurance, particularly ransomware coverage, can play an important role in enhancing resiliency but cannot cure criminal behavior that perpetuates the ransomware problem. Consumers need to be more aware of cyber risks and the impact on individual businesses and their business partners. APCIA offers Cybersecurity & Data Security Best Practices to help businesses strengthen their cyber defenses and avoid falling victim to bad actors.

"To ensure commensurate development of available insurance solutions to manage emerging cyber risks, the market should be allowed to evolve and grow responsibly. Experience, innovation, and collaboration will show how far the private sector can take the cyber market for the benefit of all interested parties," said Schoensee.

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Report link: https://www.apci.org/attachment/static/8950

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Original text here: https://www.apci.org/media/news-releases/release/77826/