Middle Market Cyber Risk and Privacy Insurance Opportunities Profiled in Free Summary From Betterley Risk Research
Study finds that U.S. middle market companies recognize the need for Cyber Risk and Privacy insurance coverage and accompanying services, but are unclear about which products are best for them. One third of the companies surveyed currently buy this type of insurance and another quarter plan to purchase within the next 18 months. CFOs and Treasurers responsible for purchasing report that providers of proactive services for data breach risk avoidance, including breach security and computer incident response assistance, are an important component of a cyber risk policy. The report profiles middle market awareness and attitudes about insurance products, services and carriers.
SCOTTSDALE, Ariz., Nov. 3, 2010 /PRNewswire/ -- This new study from Betterley Risk Research finds that insurance companies and brokers in the middle market, those with annual sales between $10 million and $500 million, are the really significant growth opportunity for Cyber Risk and Privacy insurance coverage. International cybercrime is growing at a rapid pace as cybercriminals employ more sophisticated methods to attack corporations.
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To protect against this risk, organizations can buy Cyber Risk and Privacy insurance. Larger companies have traditionally been the buyers. This is no longer the case as the real growth opportunities for Cyber Risk and Privacy coverage are now in the middle market. In this study of middle marketing companies, one third of the companies already buy this type of insurance and another 25 percent plan to purchase within the next 18 months.
The study interviews CFOs and Treasurers responsible for purchasing insurance for mid-sized companies and profiles the buying behavior of this high growth slice of the market. It includes awareness and opinions of different products and services, desirability of differing coverage features, intention to purchase – or not, the anticipated time-line for intended purchase, and perceptions of different insurance companies, brokers and risk management providers.
The study finds that the companies who intend to purchase Cyber Risk and Privacy insurance within the next 18 months consider proactive services – services that advise, alert and help with risk management are very important in their decision of which policy to buy. Almost half of them rank proactive services in their "Top Five" most important features of the policy that they would buy.
"Cyber Risk and Privacy insurance for middle-market insureds is an exciting growth opportunity for commercial insurers as it addresses the most significant coverage gaps for many companies," says Matt Cullina, CEO of Identity Theft 911. "With this emerging risk, executives are saying that coverage is not enough. They also want proactive services that help with risk management."
A free copy of the Executive Summary of this study, "Understanding the Cyber Risk Insurance and Remediation Services Marketplace: A Report on the Experiences and Opinions of Middle Market CFOs," can be downloaded at http://betterley.com/samples.php.
"Although this is a new type of coverage, executives are clearly concerned about their exposure and will find the money to pay for new premiums, despite the lingering problems in the U.S. economy, says Rick Betterley, President of Betterley Risk Consultants. "Since each insurance company offers different forms of coverage, it is important for the insureds to understand the differences between the policies offered."
The full 52-page report of this study contains 43 charts illustrating the findings and analysis of topics that include market penetration and product awareness, opinions on product features and opinions about Cyber Risk Insurers, Brokers and Service Providers. It can be purchased for $900 at http://betterley.com/ordering.php.
About Betterley Risk Research
Betterley Risk Research provides product research and consulting services to commercial lines insurance companies and service providers. Work includes consulting on the design and distribution of products and services, competitor analysis, market analysis and surveys of insureds and prospective insureds. Clients include leading insurance and reinsurance companies as well as service providers. For more information visit our website.
About Identity Theft 911
Identity Theft 911 is the nation's premier identity theft and data breach management, resolution and education service. The company serves more than 30 million people across the country and provides fraud solutions for a range of organizations—including Fortune 500 companies, the country's largest insurance companies, corporate benefit providers, banks and credit unions and membership organizations. For more information, visit our website and our Knowledge Center.
SOURCE Identity Theft 911
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