February 9, 2015 (Los Angeles). This LA Times article discusses the increase in cyber insurance due to the hack of Health insurer’s Anthem Inc’s computer system – affecting up to 80 million customers, and similar attacks over the last few years. According to the article “Hackers are wreaking havoc on big organizations, but they’re also spurring a new market- cyberattack insurance.” The article quotes several leading experts on cyber insurance including IIG CEO & Founder, Ty Sagalow:
Ty Sagalow, an industry consultant and former chief operating officer for AIG’s EBusiness division, said the growing sense that cyberattacks are no longer unusual events is dialing up the fear factor.
“Think of a massive cyberattack as an intelligent hurricane,” Mr. Sagalow said. “If it hits a house that doesn’t fall down it learns why the house didn’t fall and it changes. “It is a scary thing…. Scary things sell insurance.”
