Kroll Bond Rating Agency Releases Research Note: Cyber Insurance - Behind the Numbers

03/02/2016 05:59

NEW YORK--()--Kroll Bond Rating Agency (KBRA) released a research note outlining its views on the inconsistencies of public disclosures in describing the market for cyber insurance. The note also touches on key factors for insurers to ponder if they are considering entry into this line of business.

In the cyber insurance market, KBRA has observed heightened demand for coverage, which is challenging for insurers due to the lack of clarity regarding exposure data.

Tied into the age of cyber insurance are new products and coverages that the insurance industry will have to develop and adapt to the realities of the sharing economy. The complexities of understanding cyber insurance risks and coverages will likely facilitate an increased number of brokers and providers developing specialized units in the coming year.

KBRA expects to see improved data metrics due to regulatory requirements from NAIC, additional information requests from rating agencies, and new product vendor applications.

Please use the following link to access the report:

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).