AIG will introduce a new cyber endorsement for use with its CyberEdge program in the coming weeks under subsidiaries American Home Assurance Company, Granite State Insurance Company, Illinois National Insurance Co., National Union Fire Insurance Company of Pittsburgh, Pa. and New Hampshire Insurance Company.
This cyber security endorsement will be optional and is tentatively scheduled to go into effect in Georgia on Feb. 13, 2021. Dubbed the Elected Optional Extended Reported Period, it will offer an extended reporting period for its CyberEdge program to insureds up to period of three years, depending on the purchased option.
As with 2020, the expansion of cyber insurance products for most carriers can be expected to continue in 2021 as carriers grapple for increasingly tight market share within the segment. Most companies will aim to increase available product options so as not to lose current or potential insureds to competitors seeking different pricing and endorsement options.
AIG introduced a notable cyber exclusion to several of the aforementioned subsidiaries late last year, specifically targeting coverage for losses related to direct physical loss stemming from a cyber claim or incident. This cyber endorsement was introduced via the company’s Cyber Incident with Ensuing Causes(s) of Loss Exclusion Endorsement, with variants for country clubs, property, and ski resorts. This mirrors a similar cyber related property endorsement also introduced by competitor Zurich in 2020.
Exclusions will also likely be popular as carriers aim to limit their overall exposure. Insurors Indemnity Company will introduce several exclusions in Texas for use with its BOP on March 31, 2021. Among the four exclusions the carrier plans to introduce will be a communicable disease related exclusion, and two cyber related exclusions. These are adoptions of existing ISO forms and will seek to limit potential claims without the appropriate endorsements attached to the policy.
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