A National Association of Insurance Commissioners (NAIC) report maintains findings determined a correlation between cyberthreats and increased insurance premiums.
The Cyber Insurance analysis was garnered from data found within the Cyber Supplement, and alien surplus lines information collected through the NAIC’s International Insurance Department showed 2020 numbers reflected the cyberthreat/increased premium connection.
Per the report, insurers writing standalone cybersecurity insurance products revealed approximately $2.58 billion in direct written premiums while those executing cybersecurity insurance as a package policy noted roughly $1.49 billion in direct written premiums.
“State insurance regulators recognize cybersecurity as one of the most important topics for the insurance sector and businesses today,” David Altmaier, NAIC president and Florida Insurance Commissioner, said. “The NAIC is committed to developing new ways to monitor this evolving market to better address cyber risk.”
The NAIC said the organization provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry while also protecting consumers.
Additionally, the body is governed by the chief insurance regulators from each state, the District of Columbia, and five U.S. territories.
State insurance regulators establish standards and best practices via the NAIC, conducting peer reviews while coordinating regulatory oversight.