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ISO (a business of Verisk Analytics, Jersey City, N.J.) has launched a cyber insurance program with enhanced rating variables and coverage options designed to help insurers respond to the rapidly cyber risk market.
The ISO program features advisory loss costs using 17 different rating variables—more than three times the number of variables typically used today—that can help insurers underwrite diverse cyber risks across industries with greater precision, a vendor statement says. The ISO advisory rating plan aims to help insurers refine pricing by incorporating risk factors that are often overlooked, including years in business and revenue per employee, and by providing cyber-specific rating factors for best practices, such as data encryption and employee training. The plan was developed using predictive analytics applied to more than 32,000 historical cases, ISO reports.
The ISO cyber program features new coverage solutions for small- and midsize businesses as well as coverages for large commercial enterprises, government and nonprofit organizations, and financial services and media companies. The ISO solutions include the flexibility to enable insurers to tailor coverages, limits, waiting periods, and deductibles to their individual insureds, according to the vendor.
“Many insurers are unequipped to deal with the increasing frequency, complexity, and severity of cyber claims—they don’t have the rating information and policy language needed to serve the diverse cyber insurance market,” comments Maroun Mourad, president, ISO Commercial Lines.
Timely, Insightful and Efficient
“Our cyber insurance program features advisory loss costs and a comprehensive set of rating variables to enable unprecedented levels of detail in primary and excess pricing,” Mourad adds. “Our flexible coverage solutions are aimed to help insurers protect businesses from the rapidly changing world of cyber risk in a timely, insightful, and operationally efficient manner.”