As of January 2020 global insurer AIG will begin affirmatively covering or excluding physical and non-physical cyber exposures for the majority of its commercial P&C policies, in a move it hopes will provide great clarity on cyber risk.
Silent cyber has for some time existed as a grey area for the industry and can occur when re/insurance policies fail to explicitly exclude cyber risks, resulting in an accumulation of losses within other policies.
As the cyber threat has grown in the last five years, AIG says it has been providing more holistic cyber coverage for clients across standard commercial insurance lines and to incorporate affirmative cyber coverage into traditional P&C policies on a product-by-product basis.
“AIG believes P&C policies globally should be clear about the cyber coverage they provide. For the most part, across the industry, typical P&C policies have not been written to adequately deal with cyber exposure,” said Tracie Grella, Global Head of Cyber Insurance.
“As we shift to affirmative cyber coverages and exclusions, our clients can more closely consider the cyber peril they face and evaluate how that exposure impacts coverages and policies across their enterprise.”
AIG considers this move a continuation from the CyberEdge PC policy introduced in 2014, designed to help fill gaps in any P&C policy where cyber may have been inadequate, silent or unclear.
Then In 2016 AIG launched CyberEdge Plus, designed to provide affirmative primary coverage to clients for a range of cyber risks, including physical damage, bodily injury and business interruption.