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Personal cyber insurance faces rising claim drivers beyond add-on coverage
Insurance Business reports voluntary wire transfer fraud is the largest driver of personal cyber claims by both frequency and severity, with impersonation scams a fast-growing exposure area.
Kareen Boyadjian, vice president of cyber underwriting at Tokio Marine HCC, says personal cyber coverage has moved beyond the era of being treated as a simple homeowner bolt-on as personal cyber risk continues to rise, according to Insurance Business. She points to voluntary wire transfer fraud as the biggest driver of personal cyber claims, affecting people broadly, not just high net worth clients, while also noting that wealthier clients can face higher stakes because more of their assets, bank accounts, and cryptocurrency platforms are online. Boyadjian argues that cyber exposure depends on the weakest link in a client’s “circle of trust,” and that the speed money can move between financial platforms compounds vulnerability. She also highlights impersonation scams as one of the fastest growing areas of personal-line cyber exposure, alongside other common claim drivers including extortion and cyberbullying.
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