High-value assets: concerns about cybercrime

In its survey of high-value clients in Canada and the United States, summarized in the Chubb 2024 Wealth Report, Chubb reported growing concern about cybercrime. Identity theft and cyberbullying were among the risks most often mentioned by the approximately 800 respondents, 150 of whom were Canadian.

Insurers have reviewed the protections they offer in this area, says Vanessa Lajeunesse, a broker at Covalen. Cyber insurance generally includes $50,000 in coverage for damages related to extortion, fraud, and cyberattacks. Cyberbullying coverage is also available. Coverage can be extended up to $250,000, she says, and her clients don't ask for more than that. 

BFL Canada broker Marie-Pier Renaud points out that most clients have minimum cyber coverage of $50,000 on their policies. She says her clients don't ask her for anything more in this regard.

High-value property policies include minimum cyber coverage. “Yes, clients are asking more and more questions about the coverage available,” adds Dominique Duquette of Hub International. “Identity theft can be very costly.” She emphasizes that insurance coverage for credit card fraud also has limits.

According to Thomas Scharen, a broker with Fort Insurance and Group Benefits, clients are expressing more concern about cybercrime. “Anyone can be fooled, and fraud is now very sophisticated,” he says. He adds that the cost of coverage offered for cyber risk is low in high-value property insurance contracts. “It's very affordable.”

His colleague, Rhonda Griffin, confirms that the firm has suggested that insurers include this protection in their high-value property insurance policies. “Upon renewal with Chubb, coverage was added for everyone, with basic limits. People who feel the need can obtain more coverage,” she says. 

Thomas Scharen reports a recent case where the claim stems from a loss related to cryptocurrency theft. “There has been a major shift in customers' lifestyles. They already own works of art, jewelry, etc. They follow the trend and buy a little cryptocurrency, which is not easy to insure either,” he says.

At Intact Prestige, Vice President Achraf Louitri, explains that the coverage offered to preferred clients is regularly updated in line with developments in cyber risk. “We recently increased our available coverage limits if our clients see the need. We have also added cyberbullying to our coverage in recent years,” he says.

“Cybercrime is still an emerging risk. We need to constantly talk to our broker partners to ensure that our customers have the right coverage,” adds Louitri.