Identity theft policies go corporate.(insurance)(American International Group Inc.'s insurance policy for covering risk of financial cost arising out of identity theft)

Financial Executive, November, 2006 by Marshall, Jeffrey

The numbers are alarming: In 2005, more than 134 computer security breaches affecting potentially more than 57 million individuals were reported in the U.S., according to the Identity Theft Resource Center. Also in 2005, companies incurred an average cost of $14 million per breach incident, with costs ranging as high as $50 million, according to a survey conducted by the Ponemon Institute.

Moreover, some 80 percent of 250 executives and marketers polled in a recent study by the CMO Council registered growing levels of concern for their companies and their customers around security issues.

No wonder insurance companies see a vein of valuable ore in identity theft. A number have come out with policies protecting individuals or households, and American...

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