AIG Latest to Bring Cyber Insurance to Personal Lines High-Net Worth Clients
American International Group Inc., the biggest seller of cyber insurance to businesses, is bringing cyber insurance and risk mitigation services adapted from its CyberEdge commercial insurance product to its high net worth personal lines insurance clients.
AIG is offering the new product, called Family CyberEdge, to policyholders of its Private Client Group who are victims of threats including cyber extortion and cyber bullying. The insurance covers expenses related to data restoration and crisis and reputation management, among other claims.
In addition, AIG said it is collaborating with its strategic partner K2 Intelligence – an investigative, compliance and cyber defense services firm – to provide AIG Private Client Group policyholders with information that will enable them to manage their cyber risks more proactively. K2 Intelligence is partly owned by AIG.
Gaurav D. Garg, president and CEO of the Personal Insurance business at AIG, said CyberEdge is a product that AIG, with its scale and resources, is “uniquely capable of providing to individuals to thwart the growing threat of cyber risk.”
However, AIG is not alone in the personal lines cyber insurance market.
Chubb added cyber bullying coverage to its U.S. Masterpiece Family Protection policy last April to help cover clients and their families from the expenses associated with a cyber bullying incident. Chubb actually started adding cyber bullying coverage to its policies the United Kingdom in 2015.
The Hartford Steam Boiler Inspection and Insurance Co. (HSB), part of Munich Re, last June introduced HSB Home Cyber Protection, a personal lines cyber insurance program for consumers that bundles cyber insurance coverages once available only to businesses. The product is added to the homeowners or renters policies of insurance companies that partner with HSB.
Privilege Underwriters Reciprocal Exchange (PURE), another insurer of high net worth individuals and families, announced a similar product in 2015 in partnership with security firm Concentric Advisors. PURE’s insurance coverage is available under its high-value homeowners policy. PURE’s CyberSafe Solutions also promises to help individuals better assess, prevent, detect and respond to cyber threats.