Insurers Grappling With New Risks

Warren Buffett’s caution about underwriting cyber-insurance put the spotlight on one of the big challenges facing carriers today — how to address a slew of new insurance risks. The Oracle of Omaha told shareholders at the Berkshire Hathaway annual meeting that he didn’t want the group’s insurance business to pioneer cyber-cover because the risks were largely unknown and potentially too big. Berkshire Hathaway might write some cyber-policies to stay competitive, Buffett added, but it would not be among the top three providers in this market.