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Jun 14, 2016

Cyber Liability – So much buzz yet so little implementation?

by Caleen Alexanderson

You can’t open email, check Twitter or even blink these days without reading about Cyber Liability. Cyber Liability is supposedly the fastest growing line of business being sold in the U.S. today. New exposures and risks are popping up at every turn. And as this coverage evolved into a separate line of business a few years back, ACORD acted quickly to provide its members a form that handles Cyber and Privacy Coverage.  Recently, Cyber Liability XML policy messages were added to the standard for real time data exchange.  However: is anyone using these resources?  

Any independent agent writing Cyber Liability insurance will tell you ‘No’.  Yet, as an agent trying to deal with company-unique forms for any line of business, lack of standardization creates inconsistent and lengthy workflows within their agency.

Additionally, Cyber Liability can be as simple as coverage on a General Liability or BOP policy, but it can also be very complex.  And with increasing complexity, standardization is essential to assist agents in selling to and servicing their clients. So why aren’t P&C carriers using the ACORD 834 form and Cyber Liability XML message? 

Several questions come to mind:

  • Is ACORD membership aware the form and data messages exist?
  • Does the ACORD 834 form meet carriers’ needs?
  • Are the right coverages on the form?
  • Does the XML transaction meet carriers’ needs?
  • When do carriers plan to automate Cyber Liability?
  • Are Cyber policies too complex or only included in large commercial package policies which aren’t yet automated?

The ACORD P&C Program wants to hear from you! Input from carriers writing cyber liability policies is needed. To help us gauge the awareness and effectiveness of the existing form and XML message, we ask that you please complete this Specialty Line Business survey.  Please click the link and give us your feedback, and stay informed about future opportunities. If Cyber Liability is in your project timeline, please let us know!