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AIG

'Ambiguous' cyber wordings raise insurers' exposure

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Insurers could be responsible for cyber-related claims because of “ambiguous” policy wording in standard commercial products such as business interruption covers, according to GlobalData.

AIG has moved to address the grey area with plans next year to affirm whether its commercial policies cover or exclude cyber risks, the London-based analytics firm says.

“Steps such as this, which clearly outline what cyber risks are insured, will benefit insurance providers, enabling them to exert greater influence over their exposure,” Insurance Analyst Daniel Pearce said.

“Policyholders also stand to benefit. Moves such as AIG’s transition towards affirmative cyber insurance will help ensure policyholders have a clear understanding of which cyber perils are covered through a commercial insurance policy that is not cyber-specific.

“This, in turn, will help businesses owners more easily identify the benefits offered by a specialist cyber insurance product.”