AIG CEO Peter D. Hancock, recently stated that cyber insurance trails other lines of insurance in the amount of coverage providers offer.
Hancock stated that, “the largest coverage I’m aware of is for a bank that has about $400 million in coverage which is very small when you think about it. When you compare it to the amount of capacity that’s available for a complex chemical plant, refinery, offshore oil platform, the numbers are much, much higher.”
Comparably, Transocean LTD., which owned the Deepwater Horizon oil rig that exploded in the Gulf of Mexico in 2010, had $50 million in general liability and an additional $700 million of general liability coverage through London syndicates. Meanwhile, Target recently reported that the costs associated with its 2013 data breach will reach an estimated $252 million, of which only $90 million will be covered by insurance, leaving a $162 million tab for the retailer to cover.