RAND draft report on cyber insurance sees more exclusions from IoT, finds varying premiums

A “working paper” from the RAND Corp. examines nearly two hundred cybersecurity insurance policies and finds “surprising” variations in pricing, an anticipated increase in exclusions for physical damages in part because of the emerging Internet of Things, and the crucial role litigation is playing in response to a lack of standardization for coverage.

“By analyzing these policies, we provide the first-ever analysis of the underwriting process for cyber insurance and uncover how insurance companies understand and price cyber risks,” write...