AIG takes action on silent cyber with new mandate for global commercial lines

As of January 2020 American International Group (AIG) will begin to affirmatively cover or exclude physical and non-physical cyber exposures for virtually all of its commercial property and casualty insurance policies, in an effort to address market concerns around silent cyber risks.

AIG said traditional commercial insurance policies across the industry, from property to general liability, are often silent about cyber coverage.

“AIG believes P&C policies globally should be clear about the cyber coverage they provide," said Tracie Grella, global head of cyber insurance. "For the most part, across the industry, typical P&C policies have not been written to adequately deal with cyber exposure.

"As we shift to affirmative cyber coverages and exclusions, our clients can more closely consider the cyber peril they face and evaluate how that exposure impacts coverages and policies across their enterprise.”

The carrier said it began its multi-year transition to affirmative cyber coverage in 2014 with its CyberEdge PC policy, designed to help fill gaps in any property and casualty policy where cyber coverage may have been inadequate, silent or unclear.

In 2016, the company launched CyberEdge Plus, a standalone policy specifically designed to provide affirmative primary coverage to clients for a broad range of cyber risks, including physical damage, bodily injury and business interruption. AIG also introduced affirmative cyber coverage in its existing P&C lines when it enhanced its global Kidnap & Ransom policy to specifically address cyber as a peril.