K2, founded by corporate investigators Jules Kroll and his son Jeremy, has been bulking up its cyber-response unit with former FBI agents. AIG, one of the first firms to offer insurance for property damage caused by hackers, is counting on Berglas' team to investigate attacks on policyholders. It's also asking K2 to provide data on threats to protect clients from events that could cost hundreds of millions of dollars.
"We'd like to aggregate that data to use for ourselves, but also to use for our clients so they know what industries are being targeted by what type of attackers, what the motivation is, if it's on the rise," said Tracie Grella, who oversees cybercoverage at AIG for clients including retailers, banks and energy companies.
Grella said AIG will offer coverage limits of as much as $100 million for property damage and $100 million in bodily injury caused by a cyberattack. She predicts the market could balloon to $10 billion in annual premiums by 2020, compared with about $2 billion this year, as more companies buy policies.
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