May 09, 2017
The world’s largest cyber insurance policy was placed by Willis Towers Watson on behalf of JP Morgan Chase and sees AIG become the lead underwriter.
It has been reported that JP Morgan has a retention of $50mn, the largest in the market. AIG has a $25mn layer and is thought to have charged $1mn in premiums. If AIG is one of the carriers to have written a portion of the excess placements it would be further exposed to any cyber breach at JP Morgan Chase.
Willis has revealed that it compiled a $600mn tower written by 40 markets issuing 60 policies. The underwriters and clients have not been named due to the caution in the market about revealing this type of cover. The reason for the anonymity is that many fear that they could be identified as targets by hackers. JP Morgan is a company familiar with large scare cyber-attacks with the personal information of more than 80 million customers being stolen in 2014.
Cyber cover is expected to jump dramatically in the next few years with some predicting it could be worth $14bn by 2022.