#CyberFLASH: Lack of cyber data a current barrier to more comprehensive offerings: Kovacs

large_cybersecCanada’s property and casualty insurance industry has taken important strides to provide coverage for select cyber security risks, but the lack of data around other related threats has prevented insurers from moving forward with more comprehensive offerings, attendees of an Insurance Institute of Canada (IIC) forum in downtown Toronto heard Thursday.

Paul Kovacs, founder and executive director of the Institute for Catastrophic Loss Reduction, and president and CEO of the Property and Casualty Insurance Compensation Corporation, suggested that barriers currently exist and those hurdles will not be cleared absent the industry gathering additional information.

“In the last few years, the industry has really stepped up and offered solutions for breach attacks, for identity theft. There are some key areas where the industry is now playing a role,” Kovacs said during IIC’s inaugural Emerging Issues Forum, the first of a series of discussions that will deal with emerging issues of interest to those in Canada’s p&c industry.

With regard to Canadians and Canadian businesses buying breach and identity theft coverage, “our sense over the next five to 10 years is that’s going to grow very quickly,” he told forum attendees.

What has changed? Kovacs pointed to the “combination of companies doing a much better job in terms of having a product that is really accepted and wanted,” a large number of high-profile attacks, growing interest from governing bodies like Boards of Directors and third parties such as regulators and others asking and expecting cyber coverage to be in place.

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