“Financial settlements with regulators and affected customers can sometimes rise into the millions of dollars and take several years to resolve. For example, claims from the 2013 breach at retailer Target that resulted in the data of approximately 40 million customers being stolen continued for several years and the company was still receiving insurance payments in 2019.
Additionally, the effect of inflation on claims costs has been a consideration for insurers and their relationship with customers, as insured values at renewal increased by an average of 9% in the U.S. during the quarter.”
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This report highlights issues and trends that affected the cybersecurity insurance industry during the past quarter, including the latest changes in premiums, insurers increasing underwriting standards for cyber policies, and an expert advising privacy liability shouldn’t be overlooked when considering cyber insurance.
Source: Quarterly Cyber Insurance Update: May 2023