Beazley & Munich Re to Offer Broad Cyber Cover for Large Global Companies

Beazley, a pioneer in data breach response insurance and the largest insurer of cyber liability risks in the Lloyd’s market, has partnered with the Corporate Insurance Partner unit of Munich Re to offer broad protection for the digital assets and IT infrastructure of the world’s largest companies.

Coverage options have been developed in close collaboration with a number of large companies and their brokers, said a statement issued by Beazley and Munich Re.

As the needs of such companies vary widely, cover will be tailored specifically to the exposures of individual clients, providing up to $100 million or €100 million of protection for a wide range of cyber risks.

Coverage can be tailored to include elements for risks such as:

• Hacking or malware attacks. Such attacks have been growing steadily in scale and frequency. In the US alone, 193.5 million customer records have been stolen in large breaches involving more than 10 million records apiece in the past two years.

• (DDoS) attacks. Half of all major US companies sustained a denial of service attack to their websites last year and more than 10 percent of these attacks interrupted the companies’ web-based service capabilities. The potential for significant business interruption losses from a successful DDoS attack is high.

• Cyber extortion. So-called ransomware attacks have recently intensified. Those that have been disclosed have generally been small in scale. But the potential undoubtedly exists for far larger cyber extortion attempts.

• Property damage and bodily injury exposures from malicious cyber attacks. The impact of an attack on the smooth functioning of plant and machinery and the safety of employees, with the increasing interconnectivity of systems, is becoming more and more severe.

“Beazley and Munich Re have seen significant demand for insurance cover of this type and have already bound insurance for multinational clients seeking the broad protection – both in terms of perils covered and financial limits – that their partnership uniquely affords,” the companies said.

“The London insurance market is a crucible for innovation in cyber insurance. I am delighted that we have been able to build on our strong relationship with Munich Re to expand the coverage available for this prototypical 21st century risk,” said Adrian Cox, head of specialty lines at Beazley.

“Rapidly flowing data is the lifeblood of modern business. When that data ceases to flow, or is siphoned off, the costs for large interconnected enterprises can be huge. We can now provide the kind of robust and flexible protection that large businesses need at a time when cyber threats are proliferating worldwide,” said Mike Donovan, Beazley’s focus group leader for technology, media and business services.

“In recent years, cyber threats have risen steadily up the agenda of the world’s largest companies as they have observed the real impact of cyber incidents, with significant implications for their balance sheet and financing capabilities, through to dealing with regulators and rating agencies,” according to Chris Storer, head of cyber solutions for Munich Re’s Corporate Insurance Partner, which is dedicated to industrial clients.

“Through our close partnership with Beazley and the combining of our expertise, we believe that we can offer a service that is unique in providing large corporate and industrial clients with fit for purpose cyber solutions that help them manage the manifold risks that cyber attacks can present,” added Storer.

Source: Beazley and Munich Re