More companies are implementing cyber risk management strategies and considering cyber insurance. As a result, experts are projecting premiums for such insurance protection to reach $7.5 billion by 2020. With increasing cyber exposures on balance sheets, insurers should consider how it impacts underwriting, pricing and enterprise risk management.

Cyber incidents with broad impact are widespread and increasing. Over the past few years, service provider outages and zero-day vulnerabilities on commonly used operating systems reinforce just how connected digital risks have become. While the impact to insurers has been limited in most cases, some claims raise issues about silent cyber exposures on adjacent non-cyber coverage lines, often with higher policy limits.