Even before a global wave of ransomware attacks in mid-Maydemonstrated the vulnerability of organizations large and small,many corporate buyers were already losing sleep over the lack ofclarity and certainty in their cyber insurance coverage forproliferating digital exposures, judging from the attention devotedto such concerns during the recent Risk andInsurance Management Society (RIMS) annual conference.

Indeed, caveat emptor — let the buyer beware — seemedto be the unofficial theme of the numerous cyber risk seminarstaking up a large portion of the event's extensive educationalprogram. During one heavily attended session after another, riskmanagers, attorneys, brokers, and consultants warned howchallenging it would likely be to secure sufficient and reliablecyber coverage in this promising but problematic market.

Lack of clarity and certainty

Insurers have a lot at stake here since cyber appears to be oneof the industry's biggest opportunities for organic growth. Withnew cyber exposures manifesting themselves all the time, increasingdemand for risk-transfer solutions could offer insurers a chance toexpand the overall property-casualty premium pie, rather than keepfighting one another for a bigger slice of what's already availableto cover more routine exposures. However, predictions ofexponential growth are unlikely to be realized unless insurers canoffer clients true peace of mind about rapidly evolving cyberthreats to their people, property, reputation and bottom line.

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