Insurance giant Marsh & McLennan is leading a “Cyber Catalyst” program involving top cyber insurance companies to provide seal of approval for top-rated cybersecurity products. How will this impact consumers and the cyber insurance industry?
Insurers have a vital role to play in inoculating organizations against potentially crippling attacks. With cyber insurance premiums forecast to reach $7.5 billion by 2020, how can insurers do their part to leverage this opportunity for the benefit of customers in today’s digital world?
Lloyd’s of London has issued a bulletin indicating that its cyber insurance products will no longer cover the fallout of cyber attacks exchanged between nation-states. This definition extends to operations that have "major detrimental impact on the functioning of a state."
In what is shaping up to be a major test case for the entire cyber insurance industry, Zurich Insurance is refusing to pay out a $100 million claim from Mondelez, saying that the ransomware attack was actually an act of “cyber war,” and therefore, is not covered by the policy.
AXA made news earlier in the month for opting to drop ransomware payment coverage from new cyber insurance policies in France. Operations in Asia were subsequently hit by a ransomware attack.
Cyber insurance companies are choosing to settle things quickly with a ransom payment during ransomware attacks for fear of covering all the business interruption costs and delays of re-booting a company from scratch.
Cyber insurance premiums have jumped 73% in the U.S alone. Greater specificity over what is (and what is not) covered has become a feature of many updated policies, as has the expectation that companies need to have greater cybersecurity hygiene in place in order to qualify for insurance.
Cyber insurance providers will now incentivize clients to buy cybersecurity services and products under the new Marsh Cyber Catalyst program with first group of 17 services added this September.
If your business is dealing with data then ignoring the peace of mind that cyber liability insurance would provide would be foolhardy. In fact, the very survival of a business that stores and leverages customer data in any way may very well depend on good cyber liability coverage.