Beazley, Munich Re partner on cyber - FREE

Beazley, Munich Re partner on cyber - FREE

cyberBeazley and the Corporate Insurance Partner unit of Munich Re have partnered to offer enterprise-wide cyber protection for the digital assets of the world’s largest companies.

The deal includes providing limits up to $100m or €100m of protection for a wide range of cyber risks.

The two re/insurers said coverage options have been developed in close collaboration with several large companies and their brokers.

Coverage can be tailored by individual client needs to include elements such as hacking or malware attacks, instances of which have grown in frequency, the announcement said.

In the US market, 193.5m customer records have been stolen in large breaches involving more than 10m records apiece in the past two years, according to Beazley.

The coverage also includes distributed denial of service (DDoS) attacks. The potential for significant business interruption losses from a successful DDoS attack is high, Beazley said.

Half of all major US companies sustained a denial of service attack to their websites last year and more than 10% of these attacks interrupted the companies’ web-based service capabilities.

Cyber extortion is also available under the coverage. So-called ransomware attacks have recently intensified.

Those that have been disclosed have generally been small in scale, Beazley said, but the potential exists for larger cyber extortion attempts.

Lastly, the coverage also can be extended to property damage and bodily injury exposures deriving from malicious cyber-attacks.

The re/insurers said they have already partnered and bound insurance for multinational clients seeking broad protection, both in terms of perils covered and financial limits.

Adrian Cox, head of specialty lines at Beazley, said: "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."

Mike Donovan, Beazley’s focus group leader for technology, media and business services, said: “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 Donovan.

“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," said Chris Storer, head of cyber solutions at Munich Re's Corporate Insurance Partner unit.

“Corporate Insurance Partner, with its broad industrial and complex single risk expertise, is in a unique position to push the boundaries of insurability when it comes to helping clients cushion the true financial impact of a cyber event,” Storer added.

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