(Reuters) – Travelers Cos Inc (TRV.N) is not looking to expand its cyber insurance business and must be “respectful and prudent” about the risks involved, the head of its specialty insurance practice said on Monday.
A man poses inside a server room at an IT company in this June 19, 2017 illustration photo. REUTERS/Athit Perawongmetha/Illustration
“We feel like we’re just in the right spot,” said Thomas Kunkel, the company’s president of bond and specialty insurance, during an investor meeting in Connecticut.
Travelers knows it could do more business in the market. “It would not be hard,” Kunkel said.
Insurers have said the growing sophistication of hackers alongside a still-evolving cyber insurance industry makes it difficult to quantify their potential cyber-related losses.
“We manage our limits very closely,” Kunkel said.
Equifax Inc (EFX.N), which compiles credit information about consumers and assigns them scores, disclosed in September that cyber criminals had breached its systems between mid-May and late July and stolen 145.5 million people’s sensitive information. The hack is among the largest ever.
Insurer American International Group Inc (AIG.N) said on Oct. 26 that it was reviewing all types of coverage it offers to gauge its exposure to cyber risk.
AIG will start including cyber coverage as part of its commercial casualty insurance during the first quarter of 2018, Tracie Grella, global head of cyber risk insurance, said at the time.
The move would boost rates but also make it clearer how customers are covered if they are the victim of a security breach.
Many commercial insurers offer stand-alone cyber coverage, but it is not yet a standard addition to most other policies, such as property and casualty.
Reporting by Suzanne Barlyn; Editing by Lisa Von Ahn
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