AIG Survey Finds More Insurance Decision Makers Concerned about Cyber Threat than Other Major Risks

  AIG Survey Finds More Insurance Decision Makers Concerned about Cyber Threat
  than Other Major Risks

Develops First-Ever Cyber Risk Management Mobile App, Launches Other Tools to
    Complement CyberEdge Insurance Solution, Meet Demand for Cyber Threat
                                 Information

Business Wire

NEW YORK -- February 6, 2013

A survey of perceptions about cyber risk sponsored by the American
International Group, Inc. (AIG) found that among corporate executives, more
are concerned about cyber threats than about other major business risks.

More than 85% of the 258 decision-makers surveyed said they were very or
somewhat concerned about cyber risks to their organizations, compared with the
group’s response to six other areas of risk, including income loss (82% of
executives were very or somewhat concerned), property damage (80%), and
securities and investment risk (76%).

Additional survey results, which include input from insurance brokers, found
high demand among executives and brokers for information about cyber threats,
with 80% indicating that they find it difficult to keep pace because the cyber
threat is evolving so rapidly. This prompted AIG to develop the first-ever
mobile app for cyber risk management and to introduce other tools to further
strengthen its CyberEdge risk management solution.

Other findings of note provide further insight into the pervasiveness of cyber
risk concern among executives and brokers:

  *More than two out of three (69%) executives and brokers believe that the
    reputational risk from a cyber attack is far greater to a company than the
    financial risk.
  *More than seven in ten (75%) executives and brokers say legal compliance
    issues are making companies think more about cyber risks.
  *The vast majority of brokers and executives (82%) believe hackers are the
    primary source of cyber threats, though a significant portion of those
    surveyed (71%) also perceive human error as a significant component of
    cyber risk.

“These new survey findings confirm that business leaders view cyber risk as a
top business concern, with great potential for reputational and financial
loss. At AIG, the first company to introduce cyber insurance in 1999, we are
working to address these concerns and provide a valuable additional layer of
support through our comprehensive risk management solution for cyber
insurance,” said John Gambale, Head of Professional Liability and Lexington
Financial Lines Executive, U.S./Canada Financial Lines, AIG.

First Cyber App for Cyber Threats

Part of that solution is a free CyberEdge Mobile App for the iPad, which AIG
developed in response to the clear demand for information about cyber risk and
how to help mitigate and respond to it. The app is the first-of-its-kind for
cyber risk information and is available as a free download to anyone at the
iTunes® App Store.

The App features the latest cyber news, real-time information on country-wide
data breaches, a breach cost calculator, an events calendar and a glossary of
common cyber terms. More than 20 claims narratives are included in the App to
help brokers and clients better understand how other companies are handling
breaches.

Helping Clients Stay Ahead of the Curve

CyberEdge policyholders that qualify now also have access to AutoShun®, a
third-party hardware device that sits between a customer’s firewall and the
external Internet, to help stop a cyber attack in real-time by blocking
inbound and outbound communication with known bad IP addresses. No other
insurer offers policyholders this added level of protection.

In addition, AIG has launched the CyberEdge RiskTool, a web portal enabling
qualifying CyberEdge policyholders to proactively manage risk management
policies, training and compliance to mitigate cyber exposure. The portal
provides a simplified process and peace of mind to clients that the risks to
their sensitive information and electronic assets are removed, limited or
transferred.

“Our focus on innovation continues today as we roll out new tools and
resources. Our clients are already doing everything they can to protect their
organizations. With these new tools, AIG is bringing our experience and
guidance to help our clients stay ahead of the curve,” stated Tracie Grella,
Global Head of Professional Liability, Financial Lines, AIG.

About the Survey

On behalf of AIG, Penn Schoen Berland (PSB) conducted the survey of 323 risk
managers, IT decision makers, C-suite executives, and brokers in the United
States and Canada who play a role in selling insurance policies or determining
insurance programs within their organizations. The survey includes a mix of
AIG customers and other companies, including 60 companies with revenue between
$1 billion and $10 billion, mid-market businesses with revenue between $10
million and $1 billion, as well as large and mid-sized broker partners. These
interviews took place October through November 2012. Overall, margin of error
is +/-5.45% and larger for sub-audiences.

About CyberEdge

CyberEdge is a comprehensive cyber risk management solution offered by AIG
insurers. In a rapidly changing landscape, CyberEdge provides innovative
protection to help businesses safeguard against sensitive data breaches,
computer hacking, dumpster diving, computer viruses, employee sabotage or
error, and pilferage of information and identity theft. The best way to solve
a problem is to prevent it in the first place – but sometimes that's just not
possible. In the event that something does make it through a company’s
defenses, CyberEdge will be there to help with dedicated cyber claims
specialists and an extensive vendor network always at the ready. CyberEdge is
available in 34 countries, with additional countries launching cyber coverage
on a regular basis.

American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries and jurisdictions.
AIG companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks of any
insurer. In addition, AIG companies are leading providers of life insurance
and retirement services in the United States. AIG common stock is listed on
the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube:
www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn:
http://www.linkedin.com/company/aig

AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com.
Products and services are written or provided by subsidiaries or affiliates of
American International Group, Inc. (AIG). Not all products and services are
available in every jurisdiction, and insurance coverage is governed by actual
policy language. Certain products and services may be provided by independent
third parties under contract with AIG or its subsidiaries or affiliates.
Insurance products may be distributed through affiliated or unaffiliated
entities. In Europe, the principal insurance provider is AIG Europe Limited.

Contact:

American International Group, Inc. (AIG)
Matt Gallagher, 212-458-3247
matthew.gallagher2@aig.com
 
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