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Identity Theft Coverage Could Become ‘Personal Cyber’ Insurance

More devices often means more threat

New research from AM Best 

November 25, 2019 — OLDWICK, N.J.–(BUSINESS WIRE)–In this AMBestTV episode, AM Best analysts discuss the state of the identity theft insurance market and how the product could evolve into stand-alone personal cyber coverage.

Click here to view the entire program.

Identity theft insurance is offered typically as a supplemental product. However, with consumers now having multiple connected devices, personal cyber risks are becoming more of a threat. Samuel Hanig, senior industry analyst, said that creates a natural link with cyber insurance.

Cyber Thieves Target Data

If there’s a cyber event, cyber evil-doers will take data — not just any data, but customers’ data that has personally identifiable information,” said Hanig. “What we’re seeing is the possibility of an emerging personal lines cyber product. Currently, identity theft insurance provides coverage for legal fees following identity theft, but also potentially could provide additional protections to private individuals and maybe their families, similar to what companies get right now.”

The identity theft product overall has been profitable for insurers, the analysts said. Stand-alone identity theft policies, in comparison with packaged policies, have experienced an overwhelming majority of incurred losses in recent years.

“People who have a packaged policy that is included with their homeowners for no additional premium might not even be aware that they have that policy and can file a claim,” said Helen Anderson, associate analyst. “If you go and buy a specific ID theft policy, you are definitely aware and likely are at higher risk of having your identity stolen.”

To access the full copy of the Best’s Special Report, “Identity Theft Coverage Continues to Evolve,” please visit here.

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If you go and buy a specific ID theft policy, you are definitely aware and likely are at higher risk of having your identity stolen...

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AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.