Show The Cyberinsurance Clms
Tuesday, November 27th, 2001 Liability TechnologyJust four years after cyberinsurance policies were first introduced to the specialty market, losses are already piling up and causing some insurers to rethink their strategies, according to a broker who spoke at a recent conference. If a carrier has 1,000 cyber-policies, it has over 50 claims by now, reported Philip Norton, president of the professional liability division of Arthur J. Gallagher & Company in Itasca, Ill., during the American Conference Institute’s Online Liability Conference. The average claim is about $1 million, he added, predicting higher future amounts, during a session entitled, "Show Me the Losses." Loss ratios are already significant, he said, asserting that insurers "need to drive an average premium of $35,000 to support the losses they have already." Insurers at the conference said the majority of claims so far relate to liability for Web content.
