Cybercrime is an estimated $600 billion enterprise. While commercial insurers understand the threat posed to companies and provide products in response, individuals
are exposed to more risk than ever before.
To address these issues, personal insurers
must provide effective coverage and loss
prevention services for these new risks. And
as new threats emerge—from cybercrime
and cryptocurrencies to autonomous driving and other developing technologies—
the future of claims is also changing.
A recent Intel Security study showed
that 97% of people presented with a series
of emails were unable to differentiate safe
ones from their harmful counterparts. As
our world becomes more digitized, people must understand the risks and how to
The exploitation of real estate transactions has become a popular trend for
cybercriminals. During a recent home
purchase, a policyholder fell victim to cybercrime after receiving a spoofed email.
The email appeared to come from the
seller’s attorney and provided wire trans-
fer instructions, which the policyholder
followed to wire nearly $1 million. By
the time the fraud was discovered, the
account had been closed and the funds
were gone without a trace.
Ransomware attacks have also become more advanced. Shadow Brokers, a
highly organized hacker group, successfully breached the NSA, stealing tools
that enabled them to access the systems
of corporations and governments across
the globe including FedEx, hospitals, oil
companies and thousands of other enterprises. It is possible that Shadow Brokers
also sold these tools on the Dark Web to
other countries and organizations with
As cybercrime continues to evolve, so
must the tools insurers implement to help
manage risk and reduce the impact of the
ID theft monitoring and
There were more than 15 million identity
fraud cases in the U.S. in 2016, costing
Americans more than $16 billion. Registering for services that not only monitor
for identify theft, but also help individuals recover from it is crucial.
Active cyber threat
The security measures in place for most
home networks often pale in comparison
to those enforced by workplaces, making
the home network a major vulnerability.
Additionally, the growing connectivity of
smart home technology, including smart
thermostats, voice assistants, security
systems and other internet-connected
devices greatly increase risk.
Services like Rubica, a network comprising cyber experts, provide 24/7 active monitoring across a home network
to block malware and phishing scams.
These services also investigate suspicious
activity, patterns and behavior and notify individuals when action is necessary.
Some will even warn of unsafe behaviors,
such as entering a password on an insecure website.
While addressing cyber risks has been a
focus in the commercial insurance space
lately, personal insurers have been slow
to keep pace. Until recently, coverage did
not exist that would respond to fraudulent wire transfers, like the scenario
mentioned earlier. A number of insurers
are creating products to meet this market need, and the response has been extremely positive, confirming the importance of coverage like this in the market.
Personal insurers must continue to evolve
their product offerings to address the ever
evolving risk landscape.
Mike Taylor (Metaylor@pureinsurance.
com) is senior vice president/chief claims
officer for Pure Insurance.