AIG opens a new line: Insurance against cyber injury

|By:, SA News Editor

The nascent cyber insurance market grows up as AIG becomes the first major insurance company to offer policies compensating companies for cyber attacks which damage property and even people.

The market has been slow to develop as actuaries like lots of numbers and there aren't a lot of them from cyber attacks yet, but Tracie Grella - who oversees AIG's cyber insurance offerings - says the company has been able to draw on actuarial experience from other business lines.

“The fact that an insurance company has said there is enough actuarial foundation to offer products in what is today not a widescale problem but which certainly creates anxiety, is a very good sign,” says Aneesh Chopra who served as the U.S.'s first CTO.

Grella says AIG has seen its first claim - one arising from the so-called "Heartland bug."