Gathering over the weekend in Charleston, S.C., the National Conference of Insurance Legislators examined -- among other topics -- how cyber risk affects the insurance industry. ABA SVP Kevin McKechnie testified on behalf of ABA’s insurance affiliate, the American Bankers Insurance Association. He highlighted the need for a cyber risk “underwriter’s laboratory” if cyber insurers are to be expected to offer more affordable policies with a wider definition of benefits.
The key to this marketplace, McKechnie said, is to encourage insurers to develop underwriting metrics for cyber risks that already exist in other areas of insurance, such as auto and liability coverage. Once those metrics are in place and widely accepted, he explained, risk transfer will be more meaningful to commercial consumers.