Enhancing the scope of cyber risk insurance
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There’s more to cyber insurance than covering the cost of a loss. Companies want to cooperate with insurers to prevent risks and manage the clean-up after the event. Insurers can thus offer a better service by teaming up with third-party providers.
Imagine a major data breach at your company. How did it happen? Do you need to inform the media? What’s the extent of your liability? Assuming you have a cyber resilience programme (CRP), you’ll know how to proceed. Otherwise, you have to formulate a plan on the spot, leading to a slower response just when you have no time to spare.
The best way to formulate an effective CRP is to take out cyber cover and work with your insurer. In a survey conducted by Swiss Re and IBM® on digital interconnectedness risks, 70% of insurers either provide or plan to offer ancillary cyber-related services, mainly in partnership with third-party providers. Moreover, a significant proportion (33%) of corporations see value in these services.
Your insurer should be able to work through your CRP with you and provide a one-stop shop for the services required under the plan. That would include employee training to cope with the more sophisticated hacking attempts and penetration testing to see how secure your vital systems are. Post-incident, your insurer can provide a data forensics team, crisis communications partner and law firm for liability issues.
Insurers can also provide a customised insurance solution to reflect your company’s specific risk exposure, described as a “tailored suit, not one off the peg” by one senior risk manager in the survey.
Cyber threats can shut a business down and they are constantly changing. It’s important to prepare thoroughly for such an event. Teaming up with an insurer will allow you to do that and transfer the risk.
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