By 2021, annual damages from cyber crimes will reach an estimated $6 trillion, as data breaches, attacks on critical infrastructure, denial of service attacks and other incidents continue to make headlines. And while various insurers offer cyber coverage, AIG has been a cyber insurance pioneer since the beginning of the digital age.
In 1997, Atlanta-based insurance agent Steve Haase teamed with AIG to provide tech companies with protection against a simple hack. This set in motion AIG’s cybersecurity efforts, and two years later in 1999, AIG launched one of the first cyber security insurance protection programs.
It did not take long for cyber risk to become a problem too big for organizations to ignore. By 2000, businesses began to realize that a data breach could cripple an organization. Cyber risk was a top concern of many executives by early 2013, but by then, AIG had already developed an answer for their worries.
In 2012, the company developed a global cyber team and expanded its coverage around the world, including the United Kingdom, Germany and France. Two years later, in 2014, AIG offered pre-breach loss control services—the first insurer to do so. And in 2015, AIG invested in cyber defense firm K2 intelligence to help build their cyber security business and to provide those services to AIG clients.
As AIG’s cyber coverage practice expanded, it began to include certain personal lines, as well, such as coverage for high-net-worth individuals and families to protect against online extortion and cyberbullying while receiving assistance with reputation management. In 2017, AIG led the marketplace again by developing an AI-assisted underwriting model for cyber—in concert with a leading cybersecurity firm—that enabled the company to underwrite cyber risk using internal data from the network being insured, and to provide analytics data back to the client, as well.
Later that year, AIG began measuring clients’ cybersecurity effectiveness by providing risk models and threat intelligence that can help companies can gauge how prepared they are for common types of attacks in order to help quantify and visualize their cyber risk.
Cyber coverage has come a long way from that first policy, but AIG’s visionary leadership—and its dedication to developing innovation solutions for customers—remains the same.