Airmic members complain of privacy, CFC to introduce policy encryption

Airmic, the association representing risk managers, has complained that cyber insurers are demanding too much data, often for too little cover at too much cost. 

Airmic said its members that the “gold mine” of sensitive information offered to insurers “presents a security threat to their business”. 

“[This] would be ironic, given that they have shared such data in order to purchase cyber cover,” Airmic added.

The data requested,  Airmic says, is “not always material” and Airmic believes the “growing lists of questions” could instead be streamlined. 

Over recent quarters, the insurance industry has made big efforts to improve its risk selection, offering good terms only to the best clients. 

However, this seems not to be especially well-received by insureds who have, in addition, faced repeated rate increases and more exclusions in cyber policies in recent years.

Shortly afterwards, CFC Underwriting, a large cyber insurance provider in the market, said it will introduce policy encryption for its new and renewing cyber insurance policies in what it described as a “market first”.

“Policy encryption provides an additional layer of security for our insureds and is another critical step in keeping businesses safe from cyber threats,” CFC said, adding: “In short, this ensures that should a customer’s policy documents fall into the wrong hands, they can’t be used as leverage in an extortion attempt.”

CFC’s policy encryption launches on 1 March 2023.