On Dec. 23, the last thing holiday shoppers at Target wanted to be thinking about was having their credit-card information compromised. But that was one luxury no one on hand could afford.
“We don't know yet,” one harried store manager in Staten Island painfully admitted to one especially persistent elderly woman demanding answers about what data thieves now knew. Was she safe? Could she continue to shop? Should she? How badly had the retail giant's consumer database been compromised? No one could say for certain.
The cyber liability market remains highly competitive, with carriers still fighting over market share. Rates are stable, and brokers report capacity of up to $20 million with any one carrier and the ability to create $100 million coverage towers. And as competition remains high, underwriters are finding it increasingly difficult to exercise rigor in the underwriting process.