The Coverager Community Goes Head to Head on Cyber
Back in May, Warren Buffett said he doesn’t want Berkshire Hathaway being a leader on cyber insurance because neither he nor others in the industry really know the risk. Further, according to Bloomberg, Buffett said he’s fine with writing some cyber policies to remain competitive, but doesn’t want to be among the top three in the industry. Anyone who claims to know the base case or worst case for losses is “kidding themselves,” he said.
Enter Chubb CEO Evan Greenberg, who claims that cyber risk is insurable and that “Chubb is a large writer” of the coverage.
Enter the conflict:
Warren Buffett: "I don’t think we or anybody else really knows what they’re doing when writing #cyber [#insurance]"
Evan Greenberg: "I don't agree with the statement."Retweet if you're Team Buffett.
Like if you're Team Greenberg.— Coverager® 🐿️ (@coverager) June 8, 2018
I bought a cyber policy about a decade ago (carrier didn’t offer product following year)… I am currently looking for a new one… the new policies have come a long way. If nothing else the list of dumb 💩 to avoid re: data security is better. https://t.co/GZ9uD3sExA
— Pat West (@hedgequote) June 8, 2018
With all due respect to the #OracleofOmaha, why would you write a risk you don’t know? Did we already forget the #Insurance industry meltdown of the late ‘80s when writing #environmentalinsurance that nobody “knew” or anticipated it’s magnitude nearly crippled the industry! https://t.co/Xwg5LSX0xN
— Meyer Mandel (24601) (@InsuroSapien) June 8, 2018
@MCRazaire I agree there is much uncertainty around the peril, and pricing it is the proof!
— Meyer Mandel (24601) (@InsuroSapien) June 8, 2018
https://twitter.com/Nick_Lamparelli/status/1005641321627967488
Agree with Warren Buffett. I’m not sure how there’s really any rhyme or reason to pricing cyber insurance or controlling risk. It’s not like fire or health insurance, where there are decades or even centuries of data, and cyber risks change all the time. #CyberSecurity https://t.co/ayThu8JA2W
— A_endo (@A_Endo) June 9, 2018
https://twitter.com/ffx620/status/1005794727894151169
— Parul Kaul-Green (@ParulGreen) June 10, 2018