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AIG Is Now Selling Cyber Insurance, But Only To High Net Worth Individuals (securityledger.com)
chicksdaddy writes from a report via Security Ledger: It turns out that the rich really aren't like everyone else -- they have more cyber insurance. That, after insurance giant AIG announced Monday that it has started offering cyber insurance to protect individuals and families from ransomware attacks, data theft and cyber bullying, The Security Ledger reports. But don't go looking to sign up at Wal-Mart: the service is only available to AIG's Private Client Group, which caters to high net worth and ultra high net worth individuals and families. The service is the first of its kind to provide what insurers call "first party coverage" -- basically: insurance to make the affected party whole after an adverse incident. In a sign of the times, AIG said it will pay for things like school relocation for children traumatized by cyber bullying and ransom to cyber criminals in the hope of restoring data and technology held hostage by crypto-ransomware. Private Client Group customers must have real estate or other assets like boats or art with a value of more than $1 million, said Jerry Hourihan, president of AIG's Private Client Group for the U.S. and Canada. Hourihan said that the new service is based on similar insurance that AIG offers to businesses and is a response to inquiries and demands from its high net worth clients, who have become increasingly concerned about cyber threats, he said. The insurance would be purchased as a so-called "rider" to a traditional home insurance policy and add about 10% or 15% to the annual premium. It's not a big stretch for AIG because it turns out there's not much daylight between really well off families and businesses. "Our clients have domestic employees and family offices to help manage their lives. They take on quasi commercial exposure," Hourihan said. There are no immediate plans to offer similar protections to families of ordinary means, despite a recent survey by the firm Accenture that found as many as 1 in 4 Americans has been the victim of data theft. (https://securityledger.com/2017/02/silent-epidemic-data-theft-has-become-a-public-health-crisis-digital-guardian/)
in reality, all persons are equal. But some are more equal than others.
$1M in assets barely gets you into the top 10% today.
The real "Libtards" are the Libertarians!
Real high net worth families employ an IT manager to ensure this won't happen. $1M is at least an order too low to be able to sue AIG if they won't pay a claim.
Fuck off, AVG.
user@host$ diff
Way to piss in the pool, idiots.
Many ransomware incidents seem to involve the loss of data for the victim. If you pay the perp, you are breeding even more ransomware incidents as people start to realize that this works. You get more of what you reward.
And if you don't, you've lost your data.... UNLESS you took the necessary precautions to back it up some way that cannot be compromised by ransomware, and/or run a secure system that is not easily vulnerable to it, in which case you don't need this insurance to begin with.
I'm not rich at all, but i have a lot of data I care very much about, and I would not think of getting this insurance even if they would offer it to we down here in the peasant classes.
I"d be interested in knowing how they will insure against cyberbullying? Are they going to have goons hunt little Tommy down and tech him a lesson he'll never forget?
Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
I wonder if they've gotten any inquiries about a policy that covers impeachment.
You are welcome on my lawn.
its called the fdic with a backing of 250k...nothing else matters besides...just another marketing scheme.
Really? Paying off ransomware companies? That's just going to make them target wealthy people. I mean, I'll be fine but it's probably only going to provoke more attacks since you're guaranteed a payday if the person you hit has AIG.
And:
public static bool operator==(const Person& a, const Person& b)
{
if(a.Wealth() != b.Wealth())
return false;
else
return &a == &b;
}
... a plan of action.
It little behooves the best of us to comment on the rest of us.
You probably don't need insurance if you have a high "net worth". You should only buy insurance for things you cannot cover yourself.
If you can cover it yourself, it's usually cheaper on average to simply cover it yourself. Consumer groups will often give you this advice. Insurance co's ask a markup on what you pay into them on the average.
For example, if you can cover a $20k car crash on your own without going into bankruptcy or getting into dire financial problems, it's best to only buy insurance for amounts over $20k, having a deductible of $20k. This is sometimes called "catastrophic" insurance.
It sounds like AIG doesn't want to sell catastrophic insurance, but rather "ordinary" insurance to rich people/co's. Catastrophic coverage for the really rich would probably bankrupt AIG after an event or two. Thus, they instead are looking for rich suckers who are dumb enough to buy low-deductible insurance with payout limits. (I suppose there are specific situations where it makes sense to a given person or co, at least for the shorter term.)
Table-ized A.I.
The reason this insurance is only for the rich : it is prohibitively expensive.
For someone who has more than $1M in assets, insurance is already expensive, and so they can easily scare people with cyber horror stories into paying 10-15% more. After all, they are rich, they can pay. The "exclusive" stuff is a marketing tactic to make these rich customers feel special, and maybe more targeted, and more ready to pay.
But it is a much harder sell on average people. The risk is comparable, attacks are usually indiscriminate, and ransomware ask for a fixed sum. So it means that if you have a more typical home insurance, it could double the premium before the insurance company can expect a profit. And they probably judged that the average person won't pay.
It it turns out that normal people also want to get ripped off like the rich, they will arrange it.
$1 million is actually a pretty low threshold in economic terms. In practical terms for an insurance company, the cost of an investigation and recovery is fairly constant for $50k or $1MM; it wouldn't make sense cost-wise to have without enough at stake.
That said, this is AIG we are talking about, son of sure if I would trust them in a major "heist." But, if you are less than 15 years from retirement, something like this might make a lot of sense.
... there are no immediate plans to offer similar protections to families of ordinary means, despite a recent survey by the firm Accenture that found as many as 1 in 4 Americans has been the victim of data theft...
I think they mean because a recent survey... Etc. It doesn't do the shareholders any good to be paying claims to 25% of your clients.
The Russians have won. They have made the world a cesspool of distrust, greed, fear and hate.
It actually happens from time to time. The problem is that this doesn't give you more equality, all it gives you is a new 1%.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Of course, certain stipulations apply before I pay. For example, for the ransomware clause to take effect, you need a current backup...
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.