After our post, Do I Need Cyber Insurance [For My Business], we received notes from clients and friends thanking us for bringing this to their attention. We also got a lot of questions. We asked insurance agents in the New Orleans area that we knew specialized in cyber risk insurance to help educate all of us. Bradley Nolan with Donnaway Insurance graciously agreed to do an interview with us about the topic.
My IT - How has the cyber-risk insurance market changed in the past 3-5 years?
BN - Many new insurers entered the market recently. Previously, the market had a handful of traditional carriers with over a decade of underwriting & claims experience. Now with new insurers playing in the market, there are untested policy contracts due to them having little experience dealing with cyber and data losses. These companies that are new to the sector do not have the claims support infrastructure and technology vendor network to investigate and assess claims immediately so their pricing, underwriting coverage, and claim response is largely unknown.