Lloyd’s insurer Beazley has partnered with the corporate insurance partner unit of Munich Re to offer protection for the digital assets and IT infrastructure of the world’s largest companies.
Coverage options have been developed in collaboration with a number of large companies and their brokers. The needs of such organisations vary widely and 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, according to the firms.
Based on the individual needs of clients, coverage can be tailored to include elements for risks such as: hacking or malware attacks; distributed denial of service (DDoS) attacks; cyber extortion; and property damage and bodily injury exposures deriving from malicious cyber attacks.
Beazley and Munich Re said they 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 affords.
Adrian Cox, head of specialty lines at Beazley, 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."
Mike Donovan, Beazley’s focus group leader for technology, media and business services, added: “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.”
Chris Storer, head of cyber solutions for Corporate Insurance Partner, which is dedicated to industrial clients and part of Munich Re’s Risk Solutions activities, commented: “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.
“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: “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.”
Beazley, Lloyd's, Munich Re, Cyber protection, Adrian Cox, Mike Donovan, Chris Storer, London, UK, Europe