American International Group Inc. will either affirmatively cover or exclude cyber exposures in "virtually all" of its commercial property and casualty insurance policies, starting in January 2020.
This involves physical and non-physical cyber exposures and involves policies from property to general liability. AIG said the move addresses market concerns about so-called "silent" cyberrisk. In November 2018, AIG Europe Ltd. Chief Risk Officer Fabrice Brossart said AIG would make all of its cyber insurance coverage explicit from Jan. 1, in a bid to tackle the problem of silent cyberrisk.
AIG said it began its multiyear transition to affirmative cyber coverage in 2014 with its CyberEdge PC policy, which was 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 unveiled a policy to provide affirmative primary coverage to clients for a broad range of cyberrisk, including physical damage, bodily injury and business interruption. In the same year, AIG also began introducing affirmative cyber coverage in its existing P&C lines when it enhanced its global kidnap and ransom policy to specifically address cyber as a peril.