$125 million. That’s the first estimate of the insurance industry loss due to the Equifax cyber breach published by Property Claim Services (PCS).
Per Artemis blog:
“PCS’ initial estimate of the insurance market impact due to the Equifax hack attack is $125 million, however the firm said that the economic impact to the credit giant is expected to be much larger.
“PCS noted that there are outstanding coverage issues which could reduce the likelihood of the Equifax cyber insurance loss reaching the $125 million estimate, so it could be revised down it would appear.”
Equifax’s specific cyber insurance policy could provide as much as $150 million of coverage, according to Artemis.
Launched in early September, the PCS Global Cyber service provides industry loss estimates for cyber risk loss events of at least $20 million worldwide. The Equifax hack was its first designated event and PCS has since designated its second global cyber loss event, the impact of the Petya/non-Petya malware attack on pharmaceutical giant Merck & Co in June.
Our communications department has gotten calls about the insurance implications of the Equifax breach and what might happen to your rates if you freeze your credit. The answer, for most people, is not much. Insurers, where legal, look at your credit information when you first become a customer – when you first applied for coverage. They don’t re-evaluate unless you ask them to – something to keep in mind if you think your credit has improved. (This last is also subject to state laws – some states require a re-evaluation.) So, if you freeze your credit, there’d typically be no impact with the insurer you already have.
If you are shopping for insurance, the fact that you have applied for a policy, in most states, means that you have given permission that transcends your freeze order. So, the insurer would be able to use the information in its rating (as always, where legal.)
We also got a lot of other good information from Fair Isaac (inventor of the credit score). We will share that in a future post. . .. .