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OLDWICK, N.J.–(BUSINESS WIRE)–In this AMBestTV episode, AM Best analysts discuss the state of the identity theft insurance market and how the product could evolve into stand-alone personal cyber coverage. Click on to view the entire program.

Identity theft insurance is offered typically as a supplemental product. However, with consumers now having multiple connected devices, personal cyber risks are becoming more of a threat. Samuel Hanig, senior industry analyst, said that creates a natural link with cyber insurance.

If there’s a cyber event, cyber evil-doers will take data — not just any data, but customers’ data that has personally identifiable information,” said Hanig. “What we’re seeing is the possibility of an emerging personal lines cyber product. Currently, identity theft insurance provides coverage for legal fees following identity theft, but also potentially could provide additional protections to private individuals and maybe their families, similar to what companies get right now.”

The identity theft product overall has been profitable for insurers, the analysts said. Stand-alone identity theft policies, in comparison with packaged policies, have experienced an overwhelming majority of incurred losses in recent years.

“People who have a packaged policy that is included with their homeowners for no additional premium might not even be aware that they have that policy and can file a claim,” said Helen Anderson, associate analyst. “If you go and buy a specific ID theft policy, you are definitely aware and likely are at higher risk of having your identity stolen.”

To access the full copy of the Best’s Special Report, “Identity Theft Coverage Continues to Evolve,” please visit

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